Cattle Futures Stage Recovery
Friday saw a resurgence in cattle futures, with values climbing between $1.40 and $1.57. The month of June concluded with a slight dip of $2.65 after a dance around the Bollinger midline. Interestingly, June fats experienced a varied trajectory with monthly swings from -$4.80 to +$5.40 and a net decline of 97 cents through March. USDA reports pinned cash trade between $184 to $189, marking a general $2 decrease weekly at $186.
Feeder Cattle Trends
Feeder cattle futures showcased a positive trend on Friday, clinching gains ranging from 25 to 92 cents. The month of May only witnessed a modest retreat of $5.07, marking the 4th consecutive weekly slump. Over March, May feeders observed a net loss of $7.42. The closure of March futures occurred at $247.75 against the CME index at $248.99 on 3/27.
Beef Demand and Supply
Weekly beef reservations stood at 12,700 MT for the week ending on 3/21, displaying a 15% weekly climb and surpassing the 4-week average by 4%. Furthermore, USDA’s shipment data reported a total of 177,794 MT, reflecting a 6.4% surge over the preceding year. Thursday’s PM Boxed Beef prices demonstrated resilience, recording $308.36 in Choice, slightly dropping by 22 cents, and $301.17 in Select, with a notable $2.74 hike. Ribs prices indicated at $469.26 and $451.94 correspondingly.
Cattle Slaughter Statistics
The week’s cattle slaughter reached 483k head by Thursday, exhibiting an uptick of 8k head compared to the previous week but a shortfall of 18k head from the corresponding week of the previous year.
Apr 24 Cattle closed at $185.000, up $1.400,
Jun 24 Cattle closed at $180.250, up $1.575,
Aug 24 Cattle closed at $178.200, up $1.525,
Mar 24 Feeder Cattle closed at $247.750, down $0.300
Apr 24 Feeder Cattle closed at $247.125, up $0.250
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.
