Live cattle futures surged to new contract highs early on Monday and continued to post fresh highs throughout the session. December live cattle traded $2 higher and finished at a new contract high close of $244.55 per cwt. On the charts, prices broke out above a technical pattern on Friday, with prices finishing at a new high close for the contract. Buying momentum continued on Monday as prices followed the upside breakout feeder cattle posted early last week.

Cash trade was fairly inactive for much of the week. That held true for Friday in the Texas Panhandle. However, light to moderate demand in Kansas brought live purchases $2 higher than the previous week. Meanwhile, moderate negotiated trade in Nebraska pushed live purchases $4-$5 higher. Live purchases in the Western Corn Belt were $1-$5 higher.

Federally inspected cattle slaughter totaled 547,000 head last week, down 15,000 head from the previous week and 38,300 head lower than the same week last year. Beef packers are likely chasing fewer supplies higher as estimated slaughter hit an eight-week low. 

Beef prices remained weak to start the week. The choice cutout dipped another $1.66 lower on Monday to $363.91 per cwt. Domestic and international demand for U.S. beef remains strong despite the recent dip in wholesale values. Prices continued to sit well above their seasonal highs amid the underlying tightness in cattle supplies.

November feeder cattle traded just 45 cents higher on Monday to $376.35 per cwt. Trade was much more quiet than live cattle, though prices still posted fresh contract highs. Prices broke above a technical level on Tuesday and stomped to new contract highs the rest of the week.

The CME Feeder Cattle Index renewed its strength last week and early this week, with the index posting a fresh all-time high of $369 per cwt on Monday.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.