Cattle Markets Struggle to Sustain Gains

Futures markets see volatile trading despite strong cash prices

Feb. 6, 2026 at 5:47pm

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The cattle futures markets opened higher on the day, with both live cattle and feeder cattle futures gapping up at the open. However, the strength was short-lived as the markets reversed course and fell to new lows for the day, erasing the early gains. The inability to hold near the highs was frustrating, especially as the cash market was trading at prices not seen since mid-September, with some cash trades as high as $245 per hundredweight on Friday.

Why it matters

The volatile price action in the futures markets is concerning for livestock producers, as it suggests a disconnect between the cash market fundamentals and the futures trading. Traders appear to be reacting more to headlines, such as the potential union vote to strike the JBS plant in Greeley, Colorado, rather than the underlying supply and demand factors.

The details

The live cattle futures contract for April settled at $237.25 per hundredweight, while the feeder cattle contract settled near the low of the day at $367.425. The weakness in the futures markets came despite strong cash market prices, with the USDA reporting live cattle trades from $235 to $245 per hundredweight and dressed trades at $378 per hundredweight. The Feeder Cattle Index decreased to $374.47 as of February 5, 2026.

  • The cattle markets opened higher on the day, with Feeders gapping up at the open.
  • The markets reversed course and fell to new lows for the day, erasing the early gains.
  • The cash market was trading at prices not seen since mid-September, with some cash trades as high as $245 per hundredweight on Friday.

The players

JBS

A major beef processing company with a plant in Greeley, Colorado that was the subject of potential union strike action.

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What they’re saying

“The programs seem to be more adept at crashing markets at this present time.”

— Ben DiCostanzo, Senior Livestock Analyst (Barchart.com)

What’s next

If the union and JBS come to an agreement, it could lead to a limit-up move in the cattle futures markets, though the author believes the automated trading programs may be quicker to react to negative headlines than positive ones.

The takeaway

The cattle futures markets continue to struggle to hold onto gains despite strong fundamentals in the cash market, highlighting the disconnect between futures and physical trading. This volatility is a concern for livestock producers, who rely on stable and predictable prices to manage their operations.