Cattle futures attempted an upside breakout this week but were quickly met with selling pressure. The cattle complex started lower and ended sharply weaker on Thursday. March feeders touched limit-down before closing $6 lower at $364.07 per cwt. Much of the selling was likely profit-taking following Wednesday’s surge. Prices are just $9 away from their contract highs of $378.60. Futures rebounded on Friday, with the contract trading nearly $6 higher and reversing losses from the previous session.

April live cattle traded experienced similar trade after their gap open lower on Thursday. Prices have yet to fully reverse Thursday’s losses, but are still trading more than $4 higher by midday on Friday.

The U.S. announced a trade framework with Argentina on Thursday that scraps hundreds of tariffs on goods, including beef. A statement from Argentina’s foreign ministry noted that the country will be able to export 100,000 metric tons of beef to the U.S. with preferential access. News of more beef in the U.S. likely helped spur some of yesterday’s profit-taking, though underlying support from tight cattle supplies kept the bulls in charge to close the week.

Cash cattle trade has been quiet this week, though some trade was reported in the north on Thursday at $237 to $238. The USDA’s national cash cattle index rose back to $240 this week for the first time since October.

Research firm CattleFax said in a presentation this week that it expects the U.S. beef cow inventory to further decline in 2026. That reiterates findings from the USDA’s January cattle inventory report that showed the cow herd continued to decline last year, it may not increase until next year.

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