Cattle futures experienced a significant shift in momentum after a steady two-week rally. Both Live Cattle and Feeder Cattle futures saw increased selling pressure, with March Feeder Cattle trading limit down during the session. The volatility followed unconfirmed rumors regarding animal health concerns in the U.S. and public statements from the Texas Department of Agriculture.
From a technical perspective, the market had seen a 20% rally off recent lows prior to the pullback. The Relative Strength Index (RSI) reached its highest point since October, while overall volatility measures had previously sat at multi-month lows. Market participants remain focused on potential headline risks as the industry enters the long weekend.