April live cattle futures were higher out of the gate this week. Futures gained nearly 1 percent on Tuesday in an attempt to test the Feb. 4 high of $244.57 per cwt. A break above the level could trigger additional buying and line up a test of the contract highs. Prices held onto those gains in today’s session after rejecting an initial move lower.

April feeder cattle futures also kicked off the week on a positive note, with prices finishing $4.37 higher on Tuesday despite falling back from their intraday highs. Prices are within earshot of the Feb. 4 high.

Cattle prices have been grinding higher since the start of the new year. The five-area weighted cash cattle index rose to a record $245.18 last week, as feedlots held firm on asking prices. Negotiated sales were a record in Nebraska and Texas.

The CME Feeder Cattle Index is also near its record after rising to $376.07 per cwt on Tuesday. Feeder cattle auctions last week showed that feeders sold steady to $5 higher.

The USDA’s February Cattle on Feed report set for Friday is expected to show continued declines in the U.S. feedlot herd. A Bloomberg survey of analyst estimates expects the Feb. 1 inventory to total 11.53 million head, down 1.6 percent from a year ago.

January feedlot placements are expected to fall 4 percent from a year ago to 1.75 million head. January fed cattle marketings are expected to drop 13 percent to 1.63 million head.

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