Cattle Futures: A Dance of Decline
The bulls took a break on Wednesday as live cattle futures sauntered downward, ranging from 22 to 50 cents at the day’s close. An intriguing twist saw April merely 60 cents shy of the day’s nadir. Despite the USDA reporting slight cash transactions predominantly around $186 on Wednesday, the trading landscape for the week remains largely uncharted.
Feeder Cattle: Caught in the Downward Saddle
Meanwhile, feeder cattle futures, too, rode the wave of decline, plummeting by 12 to 55 cents during the day. April, akin to its live cattle counterpart, found itself hovering approximately 60 cents above the session’s lowest point. The CME Feeder Cattle Index put on a show of resilience, closing 39 cents stronger on March 19 at $251.41.
Market Expectations and Forecasts
Traders are eagerly awaiting the NASS report showcasing March 1 on-feed figures, projected at 11.79 million head. Should this materialize, it would mark a 0.9% uptick from the previous year. Projections for placements span anywhere from a 4.5% surge to an 8.8% leap compared to February 2023. Feb marketings are anticipated to exhibit a 3.8% surge over the previous year on average.
Boxed Beef and Slaughter Figures
USDA’s Boxed Beef prices displayed a mixed bag on Wednesday afternoon, with Choice prices edging up by 22 cents and Select prices softening by 47 cents, thereby expanding the Chc/Sel spread to $10.73. The week’s cattle slaughter through Wednesday tallied at 358k head, holding 7k head above last week’s pace but trailing 20k head behind the corresponding week last year.
Closing Market Prices
Apr 24 Cattle closed at $187.800, down $0.250,
Jun 24 Cattle closed at $184.775, down $0.225,
Aug 24 Cattle closed at $183.700, down $0.325,
Mar 24 Feeder Cattle closed at $250.250, down $0.425
Apr 24 Feeder Cattle closed at $254.925, down $0.150
On the date of publication, Alan Brugler 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
