Weekly Cattle Market Update: Futures Show Resilience Amid Mixed Data

Live Cattle Futures Gain Momentum as Cash Trade Declines

Live cattle futures closed the Friday session up to 92 cents higher, with cash trade mostly at $185 nationwide, marking a decline of $1 to $3. Feeders were particularly strong, seeing gains between $2.07 to $5.02 as the cash market showed signs of strength. The CME Feeder Cattle Index rose by $1.27 to reach $252.31 on November 14.

Export Sales Rise, Led by Japan and South Korea

The latest Export Sales report revealed beef bookings of 14,153 MT, bouncing back from last week’s calendar year low. Japan was the leading buyer for the week ending November 7, purchasing 4,300 MT, followed by South Korea with 2,500 MT. Additionally, shipments reached a three-week high of 15,845 MT, with South Korea receiving 4,600 MT and Japan 3,600 MT.

Speculators Increase Long Position in Live Cattle Futures

CFTC data indicated an increase in the net long position for live cattle futures and options, with speculators adding 5,479 contracts, bringing their total to 103,317 contracts as of Tuesday. Managed money also increased its net long position in feeder cattle futures and options by 685 contracts, now totaling 12,059 contracts as of November 12.

Wholesale Prices Drop, Slaughter Numbers Decline

In the USDA’s Friday PM report, wholesale boxed beef prices fell. Choice boxes decreased by 46 cents, settling at $303.34 per hundredweight, while Select boxes dropped 52 cents to $276.14. The spread between Choice and Select widened to $27.20. Additionally, the USDA estimated this week’s federally inspected cattle slaughter at 606,000 head, which is down 13,000 head from the previous week and 33,367 head lower than the same week last year.

Closing Market Prices on Live and Feeder Cattle

For live cattle:

• Dec 24 Live Cattle closed at $182.950, unchanged.
• Feb 25 Live Cattle closed at $185.250, up $0.150.
• Apr 25 Live Cattle closed at $187.400, up $0.475.

For feeder cattle:

• Nov 24 Feeder Cattle closed at $251.100, up $3.475.
• Jan 25 Feeder Cattle closed at $247.225, up $4.025.
• Mar 25 Feeder Cattle closed at $245.650, up $3.925.

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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.