Live Cattle Futures Dip While Beef Production Projections Increase

On Tuesday, live cattle futures closed with losses ranging from 75 cents to $1.02. Markets for cash cattle have remained relatively quiet. Last week, trade prices were $196-198 in the southern regions and $200-202 in the north. Meanwhile, feeder cattle exhibited mixed results, with contracts shifting between a drop of 22 cents and an increase of 45 cents. The CME Feeder Cattle Index increased by $2.59, reaching an average price of $276.54 as of March 10.

Beef Production Forecast Update

The monthly WASDE report provided updates on beef production forecasts for 2025, which is now expected to reach 26.685 billion pounds. This figure represents an increase of 120 million pounds from last month. The forecast reflects a decrease of 65 million pounds for the first quarter, an increase of 25 million pounds for the second quarter, a rise of 70 million pounds for the third quarter, and a gain of 90 million pounds for the fourth quarter.

Market Activity and Prices

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On Tuesday afternoon, the National Wholesale Boxed Beef prices showed mixed results. The spread between Choice and Select beef widened to $14.34. Choice boxes increased by $3.62, reaching $321.20 per hundredweight, while Select boxes dipped by 9 cents to $306.86. The USDA reported that federally inspected cattle slaughter totaled an estimated 124,000 head on Tuesday, bringing the weekly total to 239,000 head. This marks an increase of 14,000 head compared to last week and 5,152 head more than the same week last year.

Live Cattle Closing Prices

Apr 25 Live Cattle closed at $199.550, down $1.025.

Jun 25 Live Cattle closed at $196.250, down $0.975.

Aug 25 Live Cattle closed at $194.275, down $0.825.

Feeder Cattle Closing Prices

Mar 25 Feeder Cattle closed at $277.500, up $0.450.

Apr 25 Feeder Cattle closed at $277.700, down $0.225.

May 25 Feeder Cattle closed at $278.950, up $0.400.

On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information and data provided are for informational purposes only. For more information, view the Barchart Disclosure Policy here.

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