Cattle Prices in Flux
Despite a slight rebound from session lows, cattle are down significantly, with market prices seeing a dip of over $5 earlier in the trading session. Feeders are also experiencing a downturn with May figures down by as much as $4.32. The latest USDA data indicated last week’s cash trades hovering around $188 in the Southern regions and approximately $190 in the Northern parts. The CME Feeder Cattle Index of 3/22 witnessed a modest 32 cent increase, reaching $251.70.
Supply Constraints and Market Dynamics
Analysis of NASS Cold Storage data revealed that beef stocks in February totaled 442.75 million lbs, showcasing a significant 6% decline from January figures. This drop marked the tightest supply for February since 2014, indicating potential constraints in the market. Moreover, USDA’s Wholesale Boxed Beef prices witnessed a 37 cents increase for Choice on Tuesday, while Select experienced a dip of $1.52. Monday’s FI cattle slaughter of 118k head marked a decrease, with figures trailing 2000 behind the previous week and 6000 head behind the same period last year.
Current Market Performance
The market data reflects the following trends:
- April 24 Cattle: $184.075, down by $2.125
- June 24 Cattle: $179.275, down by $2.325
- August 24 Cattle: $177.100, down by $2.875
- Cash Cattle Index: $188.000, up from $185.40 last week
- March 24 Feeder Cattle: $247.650, down by $1.800
- April 24 Feeder Cattle: $246.050, down by $4.400
Disclaimer: On the publication date, Alan Brugler had no positions in the securities mentioned. The information provided is for informational purposes only. For further details, refer to the Barchart Disclosure Policy.
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