Live Cattle and Feeder Futures Show Midday Strength Amid Market Fluctuations
Live cattle futures are maintaining strength at midday, with contracts rising between 17 and 60 cents. This week’s cash trade has been slower, following last week’s robust performance. The Fed Cattle Exchange online auction this morning reported no bids or sales on the 1,258 head offered. Feeder cattle futures are increasing by 20 to 60 cents in the nearby months, although other contracts are trending downward. The CME Feeder Cattle Index recorded an uptick of $0.54 on March 18, bringing the average price to $284.65.
In terms of beef exports, sales for the week ending May 13 totaled 10,173 MT, marking the second lowest level for this marketing year. South Korea emerged as the largest buyer, purchasing 3,000 MT, while Japan secured 2,800 MT. Shipment totals fell to 15,329 MT for the week, down from the previous week. Within the shipments, South Korea received 3,900 MT, and Japan received 3,800 MT.
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Looking ahead to the upcoming Friday Cattle on Feed report, analysts predict February placements will be down 14% compared to last year, with marketings in February expected to decrease by 8.1%. It’s worth noting that last year included an extra day. The March on-feed data is projected at 98.3% of last year’s levels.
The USDA’s National Wholesale Boxed Beef report showed higher prices on Thursday morning, with the choice/select spread widening to $19.53. Choice boxed beef rose by 34 cents to $329.95 per cwt, while Select increased by $1.74, reaching $310.42. The slaughter of federally inspected cattle on Wednesday was estimated at 96,000 head by USDA, significantly impacted by blizzards in parts of Nebraska and Iowa. The cumulative total for the week reached 333,000 head, which is 29,000 head lower than the previous week and down 21,900 from the same week last year.
Apr 25 Live Cattle: $207.000, up $0.175
Jun 25 Live Cattle: $203.375, up $0.525
Aug 25 Live Cattle: $200.450, up $0.375
Mar 25 Feeder Cattle: $287.300, up $0.475
Apr 25 Feeder Cattle: $286.925, up $0.200
May 25 Feeder Cattle: $287.475, down $0.025
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 are intended for informational purposes only. For additional details, please view the Barchart Disclosure Policy here.
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