Chicago Mercantile Exchange (CME) feeder cattle futures surged to a three-month high on Friday following an unexpected boost in the US corn harvest outlook for 2026. The US Department of Agriculture (USDA) revised its forecast, predicting a larger-than-expected harvest despite adverse summer weather, which led to a significant drop in corn prices. This decline in corn costs benefited feeder cattle futures, as corn is their primary input.
CME November feeder cattle futures climbed 7.075 cents, or 2.1%, settling at 341.950 cents per pound. The rally was supported by technical buying, with the market breaking through key resistance levels. December live cattle futures also rose, gaining 3.500 cents, or 1.6%, to close at 227.050 cents per pound.
However, the cattle market had faced pressure earlier in the week due to weak cash market trading and a drop in wholesale beef prices. The USDA reported that the choice boxed beef cutout fell to $373.35 per hundredweight, down $1.50 from the previous day. Meanwhile, CME lean hog futures declined for the fourth consecutive session, with December hogs hitting a contract low of 67.325 cents per pound before settling at 67.825 cents per pound.
Ross Baldwin, a broker and market analyst at John Stewart and Associates, noted the positive impact on the feeder cattle market. "The feeder cattle market is loving this," he said, adding that the outlook for deferred months was particularly bullish.