Midday Update: Live Cattle Futures Experience Gains Amid Mixed Feeder Market

Live cattle futures are showing gains at midday trading, with increases ranging from 25 to 70 cents. Last week’s cash trade recorded prices in the southern markets at $196-$198. In contrast, northern trade was more sluggish, with sales reported at $200-$202 on Friday, reflecting stability to a $2 increase week-over-week. Feeder cattle contracts present a mixed picture, with some up 25 cents while others are down 20 cents. The CME Feeder Cattle Index has decreased by another $2.32 as of March 6, with an average price set at $273.77. At the Monday OKC feeder cattle auction, an estimated 5,000 head were offered, nearly half of the prior week’s volume, and slightly lower than the same week from the previous year.

As of March 4, speculators in live cattle futures and options have reduced their net long position by 10,843 contracts, bringing the total down to 110,468 contracts. Conversely, in the feeder cattle market, managed money saw an addition of 736 contracts to their net long, now totaling 28,880 contracts as of last Tuesday.

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The Monday morning National Wholesale Boxed Beef prices were on the rise, with the Choice/Select beef spread recorded at $9.32. Choice boxes increased by $1.42, reaching $316.32 per cwt, while Select boxes gained $1.20, settling at $307.00. According to the USDA, last week’s federally inspected cattle slaughter was estimated at 578,000 head. This number is 12,000 head higher than the previous week but shows a decline of 5,995 head compared to the same week last year.

Apr 25 Live Cattle are currently trading at $200.525, up $0.250.

Jun 25 Live Cattle are currently at $197.150, gaining $0.675.

Aug 25 Live Cattle are trading at $194.825, up $0.475.

Mar 25 Feeder Cattle are at $277.225, increasing by $0.250.

Apr 25 Feeder Cattle are currently at $278.025, down $0.125.

May 25 Feeder Cattle are trading at $278.425, with an increase of $0.225.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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