Live Cattle Futures Gain Amid Mixed USDA Beef Prices
Midday Trading Shows Upward Momentum for Cattle Contracts
Live cattle futures noticed gains between 60 to 95 cents during midday trading on Monday. In the cash market, trade averaged around $185 across the nation last week, which marked a decline of $1 to $3. Notably, feeder cattle contracts are taking the lead, with most contracts climbing by $1.50 to $2.25, and November contracts increasing by 40 cents. The CME Feeder Cattle Index also saw a rise, gaining $1.27 to reach $252.31 on November 14. Today’s Oklahoma City feeder cattle auction is expected to feature around 8,000 head, surpassing both last week’s and the same week’s totals from the previous year.
According to CFTC data, speculators in live cattle futures and options added 5,479 contracts to their net long position, bringing the total to 103,317 contracts as of Tuesday. Managed money was reported to be net long 12,059 contracts in feeder cattle futures and options on November 12, marking a weekly increase of 685 contracts.
USDA Reports Show Variability in Boxed Beef Prices
The USDA’s wholesale Boxed Beef prices presented a mixed report this Monday morning. Choice beef boxes increased by $4.48 to $307.82 per hundredweight, while Select boxes dropped by $1.09, now at $275.05. Consequently, the spread between Choice and Select beef widened to $32.77. Additionally, the USDA estimated that last week’s federally inspected cattle slaughter totaled 606,000 head. This figure indicates a decrease of 13,000 head from the previous week and a drop of 33,367 head compared to the same week last year.
Current Prices for Live and Feeder Cattle Futures
Dec 24 Live Cattle: $183.900, up $0.950
Feb 25 Live Cattle: $185.850, up $0.600
Apr 25 Live Cattle: $188.050, up $0.650
Nov 24 Feeder Cattle: $251.500, up $0.400
Jan 25 Feeder Cattle: $248.900, up $1.675
Mar 25 Feeder Cattle: $247.850, up $2.200
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 in this article is for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein belong to the author and do not necessarily reflect those of Nasdaq, Inc.
