December live cattle futures hit a 4.5-month low and lost $4.70 per hundredweight last week. Feeder cattle futures also dropped to a 4.5-month low, falling $6.325. Lean hog futures were down 70 cents last week, with all markets in near-term price downtrends, suggesting prices will likely remain sideways or lower.

Although livestock futures have been hit hard, high-range closes on Friday indicate bearish pressure may be waning. Early selling pressure on cattle futures was due in part to the U.S. lifting import tariffs on Brazilian beef. Cash cattle prices also saw a significant drop compared to the prior week.

The USDA’s monthly cattle-on-feed report revealed a 2% decrease in cattle for slaughter on Nov. 1 compared to 2024. Placements in feedlots were 10% below last year, with net placements at 1.99 million head. Marketings of fed cattle were 8% lower than in 2024, highlighting historically tight cattle supplies in the U.S.

Despite recent price declines, U.S. consumer demand for beef remains strong, especially with holiday meals approaching. Consumer confidence will be a key factor influencing beef demand in the coming months, potentially impacted by stock market performance. Lean hog futures continue to face technical selling pressure and bearish sentiment.

Falling cash hog prices favor bearish sentiment in lean hog futures, with the CME lean hog index down and cash prices dropping. Holiday demand for hams may provide support, but long-term charts show potential for further downside pressure. U.S. trade deals are positive for pork exports, with China’s demand being a key factor.

Hog traders are eager for the USDA to resume reporting export sales and cold storage data. The cyclical nature of lean hog futures may lead to more downside pressure in the coming weeks. Recent developments in U.S.-China relations are hopeful for increased global demand for U.S. pork, benefitting hog producers.

Read more at Yahoo Finance: Cattle and Lean Hog Bears Rule the Roost. What to Watch Next on the Farm.