Live Cattle Futures Show Mixed Results as Market Volatility Continues
Weekly Trading Wrap-Up: Live cattle futures experienced gains on Friday, ranging from 62 cents to $1.85. However, February futures declined by $3.625 for the week. In the North, cattle sold for $195-$195.50—unchanged from last week—while prices in the South settled at $191. Feeder cattle futures also rose, with gains between $1.07 and $1.42 on Friday, though January’s weekly loss was limited to $2.05. The CME Feeder Cattle Index dropped by 8 cents to $262.15 as of December 19.
Market Analysis: The latest Monthly Cattle on Feed report revealed that 1.796 million head of cattle were placed in November. This figure marks a 3.7% decrease from last year, although it is slightly above market expectations. Additionally, November marketings fell 1.48% to 1.725 million head, exceeding pre-report predictions. As of December 1, the on-feed inventory was 11.982 million head, a decrease of 0.28% compared to the previous year.
Trader Sentiment: According to the Commitment of Traders data, managed money spec funds increased their net long position by 8,040 contracts as of Tuesday, the largest new long in over five and a half years, bringing the total to 134,348 contracts. In the feeder cattle market, CFTC data showed specs raised their net long by 712 contracts, nearing a record at 20,578 contracts.
Beef Price Movements: The USDA’s wholesale Boxed Beef report showed mixed results on Friday. Choice boxes fell by $4.84 to $315.85 per cwt, while Select boxes increased by $1.80 to $285.91. This week, the USDA estimated federally inspected cattle slaughter at 617,000 head—up 8,000 from last week but down 4,036 from the same week last year.
Dec 24 Live Cattle closed at $191.325, up $0.975.
Feb 25 Live Cattle closed at $188.400, up $1.850.
Apr 25 Live Cattle closed at $190.125, up $1.525.
Jan 25 Feeder Cattle closed at $255.600, up $1.125.
Mar 25 Feeder Cattle closed at $255.825, up $1.250.
Apr 25 Feeder Cattle closed at $256.750, up $1.300.
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 here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
