June Live Cattle futures closed sharply lower on weak demand.

June Live Cattle futures closed sharply lower, erasing recent gains after failing to break out of a downtrend established in mid-February. Technical resistance at the upper end of the trending channel sparked a pullback ahead of Friday's Cattle on Feed report. Market participants are monitoring WTI Crude Oil futures and equity markets, as higher energy costs and portfolio pressure raise concerns about domestic consumer demand at the meat counter. Additionally, weekly export sales reached a marketing year low of 32,000 metric tons, a significant decline from the previous week's highs. Analysts are now looking toward the upcoming USDA report for further direction, with expectations centered on cattle on feed totals at 99.3% of year-ago levels.