Live Cattle Futures Decline Amid Mixed Market Signals

Live cattle futures experienced a downturn in the Friday session, with contracts decreasing between $1.67 and $3.55 by the end of trading. In particular, April futures closed the week down $1.30. Cash sales reported prices at $197 in the southern markets and a lighter $198 in the northern markets, reflecting a $2 drop compared to the previous week. Feeder cattle also slipped lower, with losses ranging from $1.47 to $2.85. However, March contracts recorded an impressive gain of $7.02 since last Friday. The CME Feeder Cattle Index rose by $1.42 on February 27, bringing the average price to $281.06.

Market Adjustments and Futures Overview

According to weekly data from the Commodity Futures Trading Commission (CFTC), managed money speculative funds reduced their net long positions by another 7,158 contracts during the week ending February 25. This left them with a net long position of 121,311 contracts. Within feeder cattle futures and options, spec traders trimmed their record net long to 28,144 contracts, down by 1,925 contracts as of Tuesday.

Beef Market Insights

On Friday afternoon, the USDA’s National Wholesale Boxed Beef report showed mixed prices. The Choice/Select spread increased to $9.78. Choice boxes gained 65 cents to reach $311.83 per hundredweight, while Select boxes fell by 8 cents to $302.05. The USDA estimated this week’s federally inspected cattle slaughter at 566,000 head, which is 3,000 head below the previous week’s figures and down by 28,236 head compared to the same week last year.

Closing Prices Summary

Feb 25 Live Cattle: closed at $197.725, down $1.675

Apr 25 Live Cattle: closed at $192.650, down $3.475

Jun 25 Live Cattle: closed at $188.775, down $3.550

Mar 25 Feeder Cattle: closed at $274.975, down $1.475

Apr 25 Feeder Cattle: closed at $273.000, down $2.550

May 25 Feeder Cattle: closed at $271.125, down $2.850

On the date of publication, Austin Schroeder did not hold (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 those of the author and do not necessarily reflect the views of Nasdaq, Inc.