Live Cattle Futures Decline as Profit Taking Emerges
Live cattle futures experienced losses on Thursday, dropping between $2.55 and $3.45. As the month comes to a close, profit-taking became more prominent. In cash trade, initial sales hit $208 in the southern regions, with some transactions reaching $209. In the north, cattle fetched about $210 live, and beef sales averaged $330. The online Fed Cattle Exchange auction on Thursday morning reported sales of $209 for two lots in Kansas and one lot sold for $211 in Colorado, utilizing the BidTheGrid™ method. Meanwhile, feeder cattle futures fell by $2.075 to $2.275, while January futures dropped $1.35 before expiration. Notably, the CME Feeder Cattle Index rose by $1.62 from the previous day, settling at $281.07 on January 29.
The USDA announced a substantial 20,166 metric tons (MT) of beef sold for shipment in 2025 during the week ending January 23. This figure marks the largest volume recorded for the year thus far. South Korea emerged as the primary buyer, securing 11,800 MT, while Japan purchased 3,800 MT. Additionally, exports surged to 21,490 MT during this week, a notable increase of 82.54% compared to the previous week and 39.23% year-over-year. South Korea received 3,400 MT of this total, with Japan receiving 2,700 MT.
As the annual Cattle Inventory report is set to be released on Friday afternoon, traders anticipate a 0.9% decline in total cattle and calves compared to last year, with the calf crop forecasted to drop by 1.5%. Analysts expect beef cow inventory to decrease by 0.7%, whereas replacement heifers are projected to rise by 1.3%.
In the USDA’s Thursday PM report, wholesale boxed beef prices exhibited a downward trend. The Choice/Select spread is currently at $11.58, with Choice boxes declining by $3.06 to $327.48 per hundredweight (cwt), while Select boxes fell by $4.77 to $315.90. The USDA estimated that federally inspected cattle slaughter reached 122,000 head on Thursday, bringing the weekly total to 484,000. This figure is 2,000 head below last week and down 16,942 head from the same week last year.
Feb 25 Live Cattle closed at $204.475, down $2.550,
Apr 25 Live Cattle closed at $201.500, down $3.450,
Jun 25 Live Cattle closed at $195.775, down $2.975,
Jan 25 Feeder Cattle closed at $281.900, up $1.350,
Mar 25 Feeder Cattle closed at $273.200, down $2.075,
Apr 25 Feeder Cattle closed at $272.325, down $2.275.
On the date of publication, Austin Schroeder did not have positions, directly or indirectly, in any of the securities mentioned in this article. All information and data herein are solely for informational purposes. For further information, please view the Barchart Disclosure Policy here.
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