Live Cattle and Feeder Futures Show Positive Trends Amid Trade Deal

On Thursday, live cattle futures saw an increase, rising between $1.30 and $1.75. Cash sales commenced with prices ranging from $218-220 in the South, while northern markets experienced higher sales, quoted at $225-228. Notably, feeder cattle futures took the lead, with several contracts surpassing the $300 mark, closing higher by $2.65 to $3.05. The CME Feeder Cattle Index also rose by $2.37 on May 7, landing at an average price of $295.78.

Adding to market optimism, the US announced a trade agreement with the UK on Thursday. A key component of this deal includes Britain increasing market access for US beef exports.

Beef Export Sales and Trends

Export sales data revealed a total of 7,642 MT of beef sold in the week ending May 1, marking a calendar year low. Japan purchased 6,600 MT, while South Korea acquired 1,900 MT. In contrast, net reductions of 5,500 MT were reported for China. Shipments declined compared to the previous week, totaling 15,122 MT, with South Korea receiving 5,200 MT and Japan 4,400 MT.

Wholesale Prices and Slaughter Data

The USDA’s National Wholesale Boxed Beef prices displayed mixed results on Thursday afternoon. The Choice/Select spread was at $14.69. Choice boxes increased by $1.74 to $347.89, whereas Select boxes decreased by 80 cents, settling at $333.20 per hundred pounds. The USDA estimated Thursday’s federally inspected cattle slaughter at 120,000 head, bringing the week-to-date total to 469,000 head. This figure exceeds the previous week’s total by 4,000 head but is down by 14,248 head compared to the same week last year.

Futures Closing Prices

Jun 25 Live Cattle closed at $214.250, up $1.725.

Aug 25 Live Cattle closed at $210.000, up $1.625.

Oct 25 Live Cattle closed at $207.475, up $1.300.

May 25 Feeder Cattle closed at $297.475, up $3.025.

Aug 25 Feeder Cattle closed at $301.250, up $2.650.

Sep 25 Feeder Cattle closed at $300.225, up $2.900.

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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.