Live Cattle Futures Surge Amid Mixed Cash Sales and Exports

Live cattle futures rose on Thursday, with contracts increasing by 57 cents to $1.50 in nearby months. February futures are set to expire today, but no deliveries have occurred yet. This week, cash sales have been less active, registering at $197 in the South and $198 in the North. The Central Stockyards Fed Cattle Exchange online auction on Thursday morning reported no sales for the 1,826 head offered, despite bids of $198 using the BidTheGrid™ method. Feeder cattle continue to lead the market, with contracts up another $2 to $2.15 in the near term on Thursday. Additionally, the CME Feeder Cattle Index rose by 91 cents on February 26, bringing the average price to $279.64.

According to the USDA’s Export Sales report released Thursday, export sales dropped to 18,225 MT for the week ending February 20. Notably, South Korea purchased 8,600 MT, while Japan bought 2,500 MT. Export shipments totaled 14,745 MT, a slight increase from the previous week. South Korea was the top destination, receiving 4,000 MT, followed by Japan with 3,600 MT.

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The USDA’s National Wholesale Boxed Beef report indicated a decline in prices on Thursday afternoon. The Chc/Sel spread lowered to $9.05, with Choice boxes decreasing by $1.72 to $311.18 per cwt. Select boxes dropped by $1.11, closing at $302.13. Thursday’s federally inspected cattle slaughter was estimated at 118,000, totaling 457,000 head for the week. This figure is up by 10,000 head compared to last week but down by 33,155 head from the same week last year.

Feb 25 Live Cattle closed at $199.400, up $0.575,

Apr 25 Live Cattle closed at $196.125, up $1.500,

Jun 25 Live Cattle closed at $192.325, up $1.050,

Mar 25 Feeder Cattle closed at $276.450, up $2.075,

Apr 25 Feeder Cattle closed at $275.550, up $2.025,

May 25 Feeder Cattle closed at $273.975, up $2.150,

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 information, please view the Barchart Disclosure Policy
here.

 

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