Cattle Futures Experience Declines Amid Fluctuating Market Conditions
Cash Trade Stays Steady
Live cattle futures saw a decline of 55 cents, reaching $1.02 on Monday. The cash trade has not yet commenced this week, but last week recorded steady transactions, with prices at $195 to $195.50 in the North and $191 in the South. Feeder cattle futures presented a mixed picture at midday; while some front month contracts rose between 10 to 80 cents, others decreased. The CME Feeder Cattle Index reported an 8-cent drop from the prior day, settling at $262.15 on December 19.
Recent Data Reveal Market Trends
On Friday afternoon, the Monthly Cattle on Feed report was published. It revealed a total of 1.796 million head of cattle placed in November, marking a decrease of 3.7% from last year, though it was slightly higher than estimates. Furthermore, November marketings fell by 1.48% to 1.725 million head, surpassing pre-report expectations. The inventory on December 1 for cattle on feed declined by 0.28% to 11.982 million head compared to last year.
Speculative Positions Increase
According to the Commitment of Traders data, managed money spec funds expanded their net long position by 8,040 contracts as of Tuesday, marking the largest increase in over five and a half years, bringing the total to 134,348 contracts. In the feeder cattle market, CFTC data indicated speculators raised their net long by 712 contracts, reaching nearly a record high of 20,578 contracts.
Wholesale Beef Prices Show Mixed Results
The USDA’s Monday morning report on wholesale Boxed Beef prices indicated mixed results. Choice boxes decreased by 80 cents to $315.05 per cwt, while Select boxes increased by $1.92 to $287.83. Additionally, the USDA estimated last week’s federally inspected cattle slaughter at 617,000 head, which is up 8,000 from the previous week but down 4,036 from the same week last year.
Live Cattle Prices:
Dec 24 Live Cattle: $190.775, down $0.550
Feb 25 Live Cattle: $187.375, down $1.025
Apr 25 Live Cattle: $189.550, down $0.575
Feeder Cattle Prices:
Jan 25 Feeder Cattle: $256.400, up $0.800
Mar 25 Feeder Cattle: $255.925, up $0.100
Apr 25 Feeder Cattle: $256.650, down $0.100
On the date of publication, Austin Schroeder did not hold (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 those of the author and do not necessarily reflect those of Nasdaq, Inc.
