Glimpse into the Market Rodeo
Cattle futures showcased their mettle on Friday, riding a bullish wave but eventually easing back by the closing bell. Despite April prices gaining 30 cents during the day, they concluded $1.20 lower than the session peak. This marked a resilient yet mixed performance, with April cattle tallying a net loss of 35 cents for the week – a streak of consecutive weekly losses. The USDA’s report unveiled cash trades spanning from $185 to $190 over the week, primarily culminating in brisk business on Friday with sales pegged at $186 for the South and $187 to $188 for the North region.
Feeder Cattle Futures: Galloping Ahead
Feeder cattle futures, on the other hand, ended Friday on a high note, celebrating gains ranging from $0.75 to $1.90. Despite this surge, April futures witnessed a setback, closing $1.92 weaker for the week. Reflecting the bullish sentiment, the CME Feeder Cattle Index stood at $249 on 3/14, marking an additional increase of 54 cents.
Insights from the CFTC Arena
Data from the CFTC revealed a shift in cattle speculative traders’ behavior, as short exposure waned during the week ending 3/12. This shift left the group 63.3k contracts net long for settlement. Specifically, spec traders displayed a net long position of 10,339 contracts in feeder cattle as of 3/12, representing a 1.2k contract weaker net stance for the week after undergoing long liquidation.
Beef Market Musings
Delving into USDA’s Boxed Beef prices, Friday afternoon showcased prices at $311.90 for Choice and $302.40 for Select, marking increases of $1.12 and 71 cents, respectively. The USDA’s reported beef output for the week totaled 501.4 million pounds, a 3.6% increase compared to the previous week but lagging by 2.8% from the same week in the preceding year. Cattle slaughter figures stood at 601k head, reflecting a 3.1% surge from the prior week and a 4.3% decline from the corresponding week in the previous year.
Market Closing Bell:
Apr 24 Cattle closed at $187.250, up $0.300,
Jun 24 Cattle closed at $183.600, up $0.225,
Aug 24 Cattle’ closed at $182.625, up $0.525,
Mar 24 Feeder Cattle closed at $249.275, up $1.800
Apr 24 Feeder Cattle closed at $252.125, up $0.950
On the publication date, Alan Brugler maintained no positions, directly or indirectly, in any securities referenced in this article. The content shared here is purely for informational purposes. For further details, refer to the Barchart Disclosure Policy.
The perspectives articulated in this piece solely represent the author’s opinions and do not necessarily align with those of Nasdaq, Inc.
