Live Cattle Futures Surge, Boosted by Strong Export Sales
Market Gains and Cash Trade Update
Live cattle futures saw a robust increase of 45 to 85 cents on Friday, adding to a solid weekly gain of $2.25 for February contracts. Cash trading remained relatively slow last week, with transactions reported at $192-193 in the South, a rise of $1-2, and $196 in the North, marking a $1 jump. On Friday morning, the Fed Cattle Exchange online auction at Central Stockyards reported 3 lots sold, including 2 at $192 live and another at $192.50, utilizing the BidTheGrid™ method. Meanwhile, feeder cattle futures wrapped up Friday’s trading with gains ranging from 45 cents to $2.07, while January futures surged by $5.77 over the week. The CME Feeder Cattle Index also ticked down $2.55 from the previous day to settle at $258.38 on December 26.
Export Sales Data and Shipment Highlights
The latest Export Sales data indicated a total of 1,099 metric tons (MT) scheduled for 2024 delivery, along with 13,066 MT for shipments in 2025. Combined sales surged by 22.29%, reaching 14,165 MT in the week ending December 19. This strong performance was underpinned by shipments totaling 16,533 MT within that week, marking a 12-week high. South Korea emerged as the leading destination, importing 4,500 MT, followed closely by Japan with 3,400 MT and China with 3,000 MT.
Boxed Beef Prices and Slaughter Rate
The USDA’s wholesale Boxed Beef prices reported an uptick in Friday’s afternoon summary. Choice boxes increased by $1.99 to $322.38/cwt, while Select boxes saw a rise of $2.36 to $291.13. The USDA estimated that federally inspected cattle slaughter reached 434,000 head last week, down by 66,521 head compared to the same period last year.
Closing Prices for Live and Feeder Cattle
Here’s a snapshot of the closing prices from December 24:
- Dec 24 Live Cattle: $193.500, up $0.725
- Feb 25 Live Cattle: $190.650, up $0.550
- Apr 25 Live Cattle: $193.350, up $0.750
- Jan 25 Feeder Cattle: $261.375, up $2.075
- Mar 25 Feeder Cattle: $260.550, up $1.050
- Apr 25 Feeder Cattle: $261.050, up $1.025
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.
