Live Cattle Futures Show Gains Amid Slow Cash Trade
Live cattle futures strengthened, closing higher on Thursday, with prices rising by $1.65 to $2.17. However, cash trading has seen a slowdown this week following last week’s robust activity. In the Fed Cattle Exchange online auction held this morning, no bids or sales were made on the 1,258 head offered for sale. In contrast, feeder cattle futures also rose significantly, increasing by $1.50 to $1.70 in the nearby contracts. On March 18, the CME Feeder Cattle Index was up $0.54, bringing the average price to $284.65.
Beef Export Sales and Shipments Analysis
In the week ending May 13, beef export sales totaled 10,173 MT, marking the second-lowest figures for this marketing year. South Korea emerged as the largest buyer, purchasing 3,000 MT, while Japan acquired 2,800 MT. Beef shipments amounted to 15,329 MT, which dropped from the prior week. Notably, shipments included 3,900 MT destined for South Korea and 3,800 MT for Japan.
Upcoming Cattle on Feed Report and Market Expectations
As analysts prepare for the Friday Cattle on Feed report, expectations indicate a 14% decrease in February placements compared to last year, while February marketings are projected to be down 8.1%. It is important to note that last year’s data included one additional day. March on-feed figures are expected to reflect 98.3% of the previous year’s levels.
Wholesale Beef Data and Slaughter Estimates
The USDA’s National Wholesale Boxed Beef report, released Thursday afternoon, presented a mixed outlook. The Chc/Sel spread narrowed to $18.70. Choice boxed beef prices dropped by $1.55, settling at $328.06/cwt, while Select prices increased by 68 cents to reach $309.36. USDA estimates for Thursday’s federally inspected cattle slaughter were at 114,000 head, with a cumulative week-to-date total of 440,000 head, showing a decrease of 43,000 head from the previous week and down 30,673 head from the same week last year.
Live and Feeder Cattle Closing Prices
Apr 25 Live Cattle closed at $208.475, up $1.650.
Jun 25 Live Cattle closed at $205.025, up $2.175.
Aug 25 Live Cattle closed at $201.825, up $1.750.
Mar 25 Feeder Cattle closed at $288.350, up $1.525.
Apr 25 Feeder Cattle closed at $288.450, up $1.725.
May 25 Feeder Cattle closed at $289.100, up $1.600.
On the date of publication, Austin Schroeder did not hold any positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are strictly for informational purposes. For more information, 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.
