Live Cattle Futures Surge as Trade Activity Increases
Strong Cash Sales Propel Cattle Market Forward
Live cattle futures are rising again, gaining between 40 to 60 cents in the front months on Friday. The cash market is showing increased activity, with sales reported at $200 in the South and live sales ranging from $202 to $205 in the North. Additionally, beef trades at $320 per unit. In feeder cattle futures, strength is noted in the front months, supported by robust cash market dynamics. January futures increased by $2.45, while other nearby futures are down by $0.10. The CME Feeder Cattle Index also rose by $2.14 from the previous day, settling at $275.00 on January 8.
In terms of beef exports, sales reached 5,599 metric tons during the week of January 2, kicking off the new year with strong numbers. Shipments for that week totaled 10,980 metric tons, with Japan receiving 3,300 metric tons, and South Korea receiving 2,800 metric tons.
Wholesale Beef Prices Show Positive Movement
The USDA’s Friday morning report indicated higher wholesale boxed beef prices, with the Choice/Select spread narrowing to $19.55. Choice boxes increased by $2.34 to $333.12 per hundredweight, while Select boxes rose by $5.22 to $313.57. Additionally, the USDA estimated federally inspected cattle slaughter for Thursday at 122,000 head, bringing the total for the week to 479,000 head, an increase of 55,629 head compared to the same week last year.
Current Live and Feeder Cattle Futures
Feb 25 Live Cattle are priced at $198.250, up $0.650.
Apr 25 Live Cattle are priced at $198.800, up $0.525.
Jun 25 Live Cattle are priced at $193.125, up $0.400.
Jan 25 Feeder Cattle are priced at $271.675, up $2.450.
Mar 25 Feeder Cattle are priced at $268.200, down $0.100.
Apr 25 Feeder Cattle are priced at $268.975, down $0.100.
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 in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
