Live Cattle Futures Dip Ahead of Cattle on Feed Report
Live cattle futures are declining at midday as traders retract early gains in anticipation of the monthly Cattle on Feed report. Current contracts are down between 35 to 90 cents, with the exception of April, which remains stable due to strong cash sales. This morning’s Fed Cattle Exchange online auction reported sales of 490 out of 980 head listed at prices between $210 to $210.50. In the cash market, trading has started at $210 in the South, while prices in the North range from $212 to $214. This marks an increase from last week’s $203 in the South and $206 in the North. Feeder cattle futures are showing decreases between 55 cents to $1.75 at midday. Meanwhile, the CME Feeder Cattle Index rose by $0.54 on March 18, setting the average price at $284.65.
Market Expectations Before Cattle on Feed Data
Analysts expect to see a notable decline in February placements, forecasting a 14% decrease compared to last year. Additionally, marketings in February are anticipated to drop by 8.1%, though last year did have an extra day of reporting. Overall, March on feed data is projected to be 98.3% of last year’s figures.
Beef Boxed Prices and Slaughter Reports
According to USDA’s National Wholesale Boxed Beef report released Friday morning, boxed beef prices increased, with the Chc/Sel spread at $19.53. Choice boxes went up by 34 cents to $329.95 per cwt, and select boxes rose by $1.74 to $310.52. USDA estimated Thursday’s federally inspected cattle slaughter at 114,000 head, bringing the week-to-date total to 440,000 head after revisions from Wednesday. This figure is 43,000 head below the previous week and down 30,673 from the same week last year.
Current Futures Prices
Apr 25 Live Cattle: $208.700, up $0.225
Jun 25 Live Cattle: $204.675, down $0.350
Aug 25 Live Cattle: $201.000, down $0.825
Mar 25 Feeder Cattle: $287.800, down $0.550
Apr 25 Feeder Cattle: $287.025, down $1.425
May 25 Feeder Cattle: $287.375, down $1.725
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.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
