Cattle Futures Decline as Cash Trade Slips
Live cattle futures fell sharply on Thursday, with losses ranging from $2.90 to $4.525. In the cash market, trading in the North reported prices at $208, down $2-$4 from the previous week. Southern markets reflected a similar trend, with prices at $206, a decrease of $2. The online Fed Cattle Exchange auction on Thursday morning showed sales of 711 head from an offering of 1,422. The trade recorded $206 live, and $208-$208.50 using the BidTheGrid™ method.
Feeder Cattle Futures Experience Significant Drop
Feeder cattle futures faced a steep decline, with contracts down $5.10 to $5.47 by market close. The CME Feeder Cattle Index also fell by $1.39 to $277.64 on February 5, reflecting ongoing market struggles.
Export Trends Show Promise Despite Market Declines
The USDA’s Export Sales report indicated strong numbers, showcasing a total of 24,907 MT for the week ending January 30. This figure marks a calendar year high, reflecting a 23.51% increase compared to the previous week, and the largest total since last August. Notably, South Korea purchased 3,900 MT while Japan bought 3,300 MT. Export shipments totaled 19,845 MT, down 7.65% from last week, yet up 23.34% from the same week in the previous year. South Korea was the leading destination with 5,700 MT shipped, alongside 5,000 MT sent to Japan.
Wholesale Beef Prices Show Mixed Results
In the USDA’s Thursday afternoon report, wholesale Boxed Beef prices displayed mixed results. The Choice/Select spread was reported at $9.21. Choice boxes decreased by $1.36 to $323.98 per hundredweight, while Select boxes saw a minor increase of 44 cents, closing at $314.77. The USDA estimated the federally inspected cattle slaughter on Thursday at 118,000 head. This brings the week-to-date total to 476,000 head, which is 8,000 head below last week and down 20,639 head compared to the same period last year.
Market Close Results
Feb 25 Live Cattle closed at $200.625, down $2.975.
Apr 25 Live Cattle closed at $196.775, down $4.525.
Jun 25 Live Cattle closed at $191.825, down $4.075.
Mar 25 Feeder Cattle closed at $265.300, down $5.425.
Apr 25 Feeder Cattle closed at $265.000, down $5.475.
May 25 Feeder Cattle closed at $263.700, down $5.100.
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 is for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
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