U.S. Cattle Futures Rally on Correction and Supply Tightening

U.S. cattle futures rose for the second consecutive week in the Sept. 8-11 trading period, driven by a correction after an aggressive selloff and tightening supplies.

The October feeder cattle price ended at $332.50 per hundredweight (cwt), up 3.9% from the previous week's settlement level, while October live cattle reached $219.68 cwt, increasing 3.2%.

Livestock traders returned to the market after several weeks of declines, and analysts pointed to a rebound in cash cattle prices as well as easing corn futures as supportive factors.

David Anderson of Texas A&M AgriLife Extension noted that market fundamentals continue to show tight supplies, and Andrew Griffith of the University of Tennessee Institute of Agriculture characterized the advance primarily as a correction following an excessive reaction to negative market news.