Mixed Signals in Live Cattle Futures Amid Strong Feeder Prices
Live cattle futures are showing mixed results on Tuesday, ranging from 12 cents higher to 45 cents lower. Last week, cash trade averaged between $186 and $188, centering around $187. During this week, trading activity has been relatively quiet, with feedyards gathering showlists.
Feeder Cattle Continue to Gain Traction
Feeder cattle are performing well, with prices rising by $1.30 to $1.90. The CME Feeder Cattle Index rose to $254.72 as of November 22, reflecting an increase of 18 cents. In the weekly feeder cattle auction held in Oklahoma City, a total of 6,345 head were sold on Monday. Although this number is lower than last week, it exceeds the same week last year. Prices for feeders increased by $4 to $10, with calves seeing even greater gains of $10 to $20. Demand remains strong, showing good to very good levels.
Beef Stocks Hit a 10-Year Low
Recent Cold Storage data released on Monday revealed that beef stocks at the end of October reached 431.88 million pounds, marking a 10-year low for this period, but exhibiting a seasonal increase of 4.71% from the previous month.
Wholesale Prices Reflect Strength
The USDA’s Tuesday morning report indicated that wholesale Boxed Beef prices were on the rise. Choice boxed beef increased by $3.85 to $313.56 per hundredweight, while Select boxes saw a $4.37 increase, totaling $278.11. This narrowed the Chc/Sel spread to $35.45. Furthermore, the USDA estimated that Monday’s federally inspected cattle slaughter reached 120,000 head, which is 2,000 head above the count from the previous Monday yet down 4,069 head from the same week last year.
Live and Feeder Cattle Prices
Dec 24 Live Cattle are priced at $186.625, an increase of $0.125.
Feb 25 Live Cattle stand at $187.275, down by $0.425.
Apr 25 Live Cattle are available at $189.350, showing a decrease of $0.300.
Jan 25 Feeder Cattle are priced at $257.375, which is up by $1.900.
Mar 25 Feeder Cattle stand at $256.000, reflecting an increase of $1.675.
Apr 25 Feeder Cattle are available at $256.825, up by $1.300.
On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information contained herein is for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
