Chicago Mercantile Exchange (CME) feeder cattle futures surged to a three-month high on Friday after the US Department of Agriculture (USDA) revised its 2026 corn harvest outlook upward. The unexpected update triggered a sharp decline in corn prices, benefiting feeder cattle as the cost of their primary feed input dropped.
Live cattle futures also rose, reaching a two-month peak, with technical buying adding momentum. The USDA's monthly crop report indicated that US farmers are expected to harvest the second-largest corn crop on record, despite adverse summer weather that had led traders to anticipate a production cut.
Corn futures plummeted by their daily 30-cent-per-bushel trading limit, boosting feeder cattle prices. Ross Baldwin, a broker and market analyst at John Stewart and Associates, noted the bullish sentiment in the feeder cattle market, particularly in deferred months. CME November feeder cattle futures closed up 7.075 cents, or 2.1%, at 341.950 cents per pound.
December live cattle futures settled up 3.500 cents, or 1.6%, at 227.050 cents per pound after breaking through technical resistance. However, cattle futures had faced pressure earlier in the week due to sluggish cash market trading and a decline in wholesale beef prices. The USDA reported the choice boxed beef cutout at $373.35 per hundredweight, down $1.50 from the previous day.
In contrast, CME lean hog futures ended lower for the fourth consecutive session, weighed down by weak cash hog and pork prices. Most-active December hogs fell to a contract low of 67.325 cents per pound and settled 0.775 cent lower at 67.825 cents per pound.