Live Cattle Futures Surge Alongside Cash Market Gains
On Friday, live cattle futures made notable gains, striving to match the robust cash market. Contracts rose between $1.45 and $2.25, with June contracts increasing by $2.85 over the week. The cash trade experienced a $5 to $6 upward trend nationwide, with southern trade reported at $218, and Northern prices reaching $222 to $224.
Feeder cattle futures also participated in the upward movement, with contracts climbing $1.70 to $2.70 across most terms. Specifically, May contracts were up $4.425 this week. The CME Feeder Cattle Index increased by 28 cents on May 1, reflecting an average price of $296.38.
According to the Commitment of Traders data, live cattle spec funds added 8,380 contracts to their net long position, bringing the total to 128,840 contracts as of April 29. In contrast, those involved in feeder cattle futures and options reduced their net long position by 160 contracts to 27,901 contracts by Tuesday.
The USDA’s National Wholesale Boxed Beef prices showed mixed results on Friday afternoon, resulting in a Chc/Sel spread of $17.55. Choice boxes decreased by 27 cents, closing at $342.90, while Select products rose by $1.07 to $325.35 per hundred pounds. Additionally, USDA’s federally inspected cattle slaughter was estimated at 550,000 head this week—5,000 head higher than the previous week but down 61,527 head compared to the same week last year.
Jun 25 Live Cattle closed at $211.100, up $1.450.
Aug 25 Live Cattle closed at $206.775, up $2.125.
Oct 25 Live Cattle closed at $204.475, up $2.250.
May 25 Feeder Cattle closed at $294.950, up $1.725.
Aug 25 Feeder Cattle closed at $296.900, up $2.450.
Sep 25 Feeder Cattle closed at $295.550, up $2.700.
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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
