Live Cattle Futures Rise Amid Weaker Beef Demand
Live cattle futures finished Thursday’s trading session higher, increasing by 42 cents to reach $1.20. This rise occurred despite a slowdown in boxed beef sales. In the cash market, activity has been limited this week, with light sales in the North reported between $186 and $188. The Central Stockyards Fed Cattle Exchange earlier saw no sales from the 3,044 cattle offered, with bids ranging from $185 to $188.50. For feeder cattle, futures increased between 30 and 85 cents by the end of the day, while November futures fell slightly by 5 cents. On November 6, the CME Feeder Cattle Index dropped by 90 cents to $249.92.
Weak Export Numbers Highlight Beef Market Challenges
The morning Export Sales report revealed a disappointing 7,966 metric tons (MT) of beef bookings, marking the lowest figure for the calendar year. Among these, South Korea received 2,100 MT, while Japan accounted for 2,000 MT. Additionally, total shipments reached a six-week low at 14,368 MT, with South Korea remaining the top destination at 4,100 MT, followed closely by Japan at 3,100 MT.
USDA Reports Significant Drop in Boxed Beef Prices
In its Thursday afternoon report, USDA indicated a sharp decline in wholesale boxed beef prices. Choice boxed beef fell by $6.13, settling at $309.46 per hundredweight (cwt), while Select prices dropped by $3.48 to $279.72/cwt. As a result, the Choice/Select spread narrowed to $29.74. The USDA also estimated that Thursday’s federally inspected cattle slaughter totaled 125,000 head, bringing the week’s cumulative total to 494,000 head. This figure exceeds the previous week by 4,000 head but is 3,741 head less than the same week last year.
Current Futures Prices
Dec 24 Live Cattle closed at $185.825, up $0.425.
Feb 25 Live Cattle closed at $187.425, up $0.700.
Apr 25 Live Cattle closed at $188.250, up $0.450.
Nov 24 Feeder Cattle closed at $247.650, down $0.050.
Jan 25 Feeder Cattle closed at $244.325, up $0.300.
Mar 25 Feeder Cattle closed at $242.250, up $0.500.
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy.
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