Live Cattle Market Sees Mixed Results Post-Weekend

Live cattle futures started the week strong but ended with losses ranging from 5 to 35 cents. Last week, cash trade prices were reported between $208-210 in the Southern region and $212-214 in the Northern region. Feeder cattle futures also experienced declines, dropping between $1.25 and $1.75. The CME Feeder Cattle Index decreased by $3.12 on April 18, settling at an average price of $289.30. At the Oklahoma City feeder cattle auction on Monday afternoon, 1,582 head were sold with prices remaining steady.

USDA Report Highlights Rising Placements and Lower Inventory

A report from the USDA, released on Thursday, detailed the Cattle on Feed statistics. It showed that March placements increased by 5.08% compared to last year, reaching 1.841 million head. Meanwhile, March marketings rose by 1.05% to 1.725 million head. However, the April 1 cattle on feed inventory declined by 1.59%, totaling 11.638 million head. The report included a breakdown showing that there are 4.38 million head of heifers in feed, which constitutes 37.64% of the total—a record low for the past five years.

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Speculative Funds Adjust Positions

According to CFTC data, speculative funds in live cattle futures and options reduced their net long positions by 11,980 contracts to a total of 106,523 contracts as of Tuesday. Managed money also decreased their net long positions in feeder cattle futures and options by 2,122 contracts, reaching 25,915 contracts by April 15.

Wholesale Beef Prices and Slaughter Figures

The USDA National Wholesale Boxed Beef report released Monday afternoon reflected an increase, with the Choice/Select spread narrowing to $14.75. The price of Choice boxes rose by $2 to $333.52 per cwt, while Select boxes increased by $3.22 to $318.77. Federal inspection estimates indicated that Monday’s cattle slaughter numbers reached 100,000 head, which is 12,000 head lower than the previous Monday and down 12,211 head from the same week last year.

Closing Prices for Cattle Futures

Apr 25 Live Cattle closed at $209.775, down $0.050.

Jun 25 Live Cattle closed at $203.750, down $0.325.

Aug 25 Live Cattle closed at $200.000, down $0.125.

May 25 Feeder Cattle closed at $285.525, down $1.325.

Aug 25 Feeder Cattle closed at $289.150, down $1.725.

Sep 25 Feeder Cattle closed at $288.000, down $1.575.

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 are 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.