Cattle Futures Close Lower After Midday Gains
Cash Prices Remain Strong Despite Futures Decline
Live cattle futures were initially trading positively at midday, but after lunchtime, sellers emerged, leading to losses ranging from $1.05 to $1.57 across most contracts. Last week, cash trades reported prices of $200-201 in the Southern region and $202, with some sales reaching $205 in the Northern markets. Meanwhile, feeder cattle futures experienced a decrease of 50 cents to $1.85 in various contracts. The CME Feeder Cattle Index fell by $1.25 to settle at $277.30 on January 10. The latest Weekly OKC feeder cattle auction reported 7,500 head listed, a figure that remained consistent with last week but was notably lower than last year’s numbers. Sales included feeder steers and calves priced $6-12 higher, feeder heifers increasing by $4-8, and calves up by 10-13.
Speculative Traders Boost Positions in Cattle Futures
Data from the Commitment of Traders showed a notable increase in speculative funds, adding 14,261 contracts to their net long position in live cattle futures and options as of January 7, bringing their total to 143,456 contracts. Additionally, managed money spec funds in feeder cattle reached a record net long of 26,384 contracts, an increase of 4,455 contracts over the week.
Wholesale Beef Prices Rise as Slaughter Numbers Increase
The USDA’s Monday PM report indicated higher wholesale Boxed Beef prices. The spread between Choice and Select narrowed to $15.78. Choice boxes increased by 51 cents to $333.35/cwt, while Select rose by $3.43 to $317.57. Estimated federally inspected cattle slaughter for Monday stood at 117,000, which is 8,000 head above last Monday and an increase of 8,958 head compared to the same time last year.
Closing Prices on Cattle Contracts
Feb 25 Live Cattle closed at $197.400, down $1.375.
Apr 25 Live Cattle closed at $198.200, down $1.275.
Jun 25 Live Cattle closed at $192.525, down $1.575.
Jan 25 Feeder Cattle closed at $271.850, down $0.500.
Mar 25 Feeder Cattle closed at $267.900, down $1.500.
Apr 25 Feeder Cattle closed at $268.325, down $1.850.
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 the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
