Mixed Market Sentiments
The cattle market experienced a flurry of activity on Monday as fats surged 12 to 57 cents, while feeders stumbled between 50 cents to $1.52. With the April live cattle contract showcasing a $1.67 fluctuation, volatility seemed to reign supreme in trading circles. Amidst this tumult, the CME revealed the completion of 16 deliveries for February cattle out of the 49 scheduled for the month. Notably, USDA’s OKC Feeder Auction Review disclosed 11.4k head sold with prices escalating by $2-$5. Additionally, cash trade figures ranging from $180.50 to $184 on Friday pointed to a spirited market, with considerable volume.
Insight into Market Dynamics
Despite the market fluctuations, the bulk of the week’s trades leaned towards higher values, settling near $182, a $2-$3 increment from previous levels. The CME Feeder Cattle Index mirrored this upward trend, touching $246.64 on the 23rd of February – marking an increase of $1.98 from the previous index.
Market Reports and Data Reflections
The monthly Cattle on Feed report painted a vivid picture, with 11.797 million head on feed as of February 1st. This figure exceeded last year’s tally by 0.4%, slightly higher than anticipated figures pre-reporting. Placements showed a notable 7.4% decline compared to the previous year, with 1.792 million head placed in January, while marketings reached 1.844 million head.
The NASS Cold Storage data highlighted a decline in beef stocks to 475.4 million pounds in January, the lowest January stock levels since 2014. In the same breath, USDA’s Boxed Beef prices soared on Monday evening with Choice beef up $1.18 to $301.79 and Select beef at $287.99 after a $1.68 surge. Monday’s cattle slaughter figures reached 122k head, showing an increase from the previous week’s 104k head during President’s Day, yet remaining 2k head shy of last year’s figures.
Closing Numbers for Futures
As trading drew to a close, the numbers painted an interesting picture: Feb 24 Cattle closed at $185.725, up $0.125. Apr 24 Cattle ended the day at $188.100, climbing $0.200, while Jun 24 Cattle concluded at $184.100, marking a $0.225 increase. In a different tune, Mar 24 Feeder Cattle settled at $253.050, down by $1.525, and Apr 24 Feeder Cattle closed at $258.900, down by $1.075.
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. The information and data presented here are solely for informational purposes.
The views and opinions articulated in this article are those of the author and do not necessarily align with those of Nasdaq, Inc.
