Market Update: Mixed Results for Live Cattle and Feeder Cattle Futures
Live Cattle Futures Show Varied Movement
Live cattle futures concluded Friday’s session with contracts experiencing fluctuations; they rose by 22 cents but also dipped by 40 cents. The February contract saw a decline, closing down at $2.025 compared to last Friday. In cash trading this week, prices were reported at $200-201 in the South, with some sales reaching $202-205 in the Northeast. Meanwhile, feeder cattle futures increased by 5 to 32 cents for the near months, while deferred contracts fell between 7 to 50 cents. Notably, January saw a weekly rise of $1.15. The CME Feeder Cattle Index also decreased by $1.25 from the previous day, settling at $277.06 as of January 16.
Speculator Activity Shows Rising Interest
Large managed money speculators in live cattle futures and options have added 3,965 contracts to their net long position, bringing their total to 147,421 contracts as of last Tuesday. In the feeder cattle sector, speculators expanded their positions with an addition of 2,365 contracts, pushing their net long to a new record of 28,749 contracts for the week ending January 14.
Boxed Beef Prices Reflect Current Market Trends
The USDA reported mixed results for wholesale Boxed Beef prices in the Friday afternoon update, with the Chc/Sel spread tightening to $13.86. Choice boxes increased by 28 cents to $333.69 per hundredweight, while Select boxes rose 45 cents to $319.83. In addition, the USDA estimated that federally inspected cattle slaughter this week reached 603,000 head—14,000 more than last week but down 2,147 from the same week last year.
Closing Prices for Cattle Futures
Feb 25 Live Cattle closed at $196.750, up $0.150,
Apr 25 Live Cattle closed at $197.500, down $0.175,
Jun 25 Live Cattle closed at $192.200, up $0.225,
Jan 25 Feeder Cattle closed at $273.500, up $0.050,
Mar 25 Feeder Cattle closed at $268.050, up $0.325,
Apr 25 Feeder Cattle closed at $268.125, down $0.075.
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 details, 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.
