Cattle Futures See Declining Prices Amid Mixed News
Live cattle futures experienced declines on Monday morning, from 87 cents to $1.95. Last week, cash trades were reported at $208-209 in the Southern region, while Northern sales ranged between $208-212 live and $330-332 in beef.
Feeder Cattle Face Significant Losses; USDA Addresses Import Protocols
Feeder cattle futures witnessed larger losses of $4.35 to $4.75. As of January 30, the CME Feeder Cattle Index increased by 61 cents, reaching $281.68. Additionally, the USDA announced that cattle imports from Mexico are set to resume soon, but with a new, strict inspection protocol for border crossings.
Cattle Inventory Report Indicates a Decrease in Numbers
The annual Cattle Inventory report released on Friday showed a slight decline in overall cattle and calves, down by 0.57% to 86.662 million head. The forecast for the 2024 calf crop decreases by 0.1% to 33.53 million head, while the beef cow inventory dropped by 0.53% to 27.86 million head. Furthermore, beef replacement heifers saw a decline of 0.97%, totaling 4.672 million head.
Speculative Funds Adjust Positions in Cattle Futures
As of Tuesday, speculative funds in live cattle futures and options increased their record net long position by 8,443 contracts to a total of 156,909 contracts. In contrast, managed money in feeder cattle reduced their record net long by 496 contracts to 28,879 contracts.
Boxed Beef Prices and Slaughter Estimates Show Mixed Trends
USDA’s wholesale Boxed Beef prices rose in Monday’s report, with the Chc/Sel spread reported at $10.42. The choice boxes increased by $3.55, reaching $331.23 per hundredweight, while select boxes went up by $3.74 to $320.81. The USDA estimated a federally inspected cattle slaughter of 600,000 head for the previous week, surpassing last week’s figure by 1,000 head but falling short of the same week last year by 32,438 head.
Feb 25 Live Cattle are at $203.725, down $0.875.
Apr 25 Live Cattle are at $200.375, down $1.925.
Jun 25 Live Cattle are at $194.750, down $1.950.
Mar 25 Feeder Cattle are at $271.225, down $4.500.
Apr 25 Feeder Cattle are at $270.500, down $4.625.
May 25 Feeder Cattle are at $268.750, down $4.375.
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.
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