Live Cattle Futures Surge as Feeder Cattle Prices Climb

Market Highlights: Live cattle futures saw increases ranging from $1 to $1.45, while feeder cattle prices rose significantly on Tuesday. Cash trade reported sales of $188-190 in the South and $190-192 in the North last week, with early trading this week focusing on compiling showlists.

Feeder cattle values are experiencing a boost, gaining between $2.25 and $3.45 in the nearbys on Tuesday. The CME Feeder Cattle Index rebounded to $257.13 on November 29, up $2.81 from the previous day. Notably, the weekly Oklahoma City feeder cattle auction noted approximately 10,398 head listed for Monday’s sale. This figure marks an increase from last week but a decrease compared to the same week last year. Prices for feeders were steady to $2-$3 higher, with 700-800-pound calves rising between $5-$10. Some calves even saw increases of $15.

According to the CFTC Commitment of Traders data, speculative traders increased their net long positions in live cattle futures, adding 6,981 contracts to reach a total of 115,396 contracts as of last Tuesday. In the feeder cattle category, managed money also expanded their net long positions by 3,068 contracts, bringing the total to 16,735 contracts as of November 26.

The USDA’s wholesale Boxed Beef prices were mixed in the report released on Tuesday morning. Choice boxes increased by $1.03 to $314.04 per hundredweight, while Select boxes dropped by 40 cents to $276.60. Consequently, the spread between Choice and Select narrowed to $36.01. Additionally, USDA estimated the federally inspected cattle slaughter on Monday at 117,000, down by 3,000 head from the prior Monday and 7,268 head lower than the same Monday last year.

Dec 24 Live Cattle are trading at $188.700, which is an increase of $1.175.

Feb 25 Live Cattle stand at $189.375, up $1.450.

Apr 25 Live Cattle are priced at $191.475, reflecting an increase of $1.350.

Jan 25 Feeder Cattle are currently at $260.300, up $3.450.

Mar 25 Feeder Cattle have reached $258.250, increasing by $2.700.

Apr 25 Feeder Cattle are priced at $259.250, gaining $2.275.

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
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