Live Cattle Futures Slide Amid Mixed Market Signals
Live cattle futures declined on Tuesday, falling between 87 cents to $1.475. Last week, cash trade showed some improvement, increasing approximately $2 compared to the week prior. Southern sales were recorded at $190-191, while Northern transactions ranged from $190-192. This week, activities have primarily focused on compiling showlists.
Feeder Cattle Futures Experience Notable Losses
Feeder cattle futures saw losses ranging from $2 to $3.12 across the board, with the near-expiry October contract dipping just a nickel. At Monday’s OKC feeder cattle auction, 8,142 head were available for sale. Demand was characterized as good, with steady prices for both feeder cattle and calves compared to last week. The CME Feeder Cattle Index increased by 12 cents, sitting at $249.49 as of October 28.
Wholesale Beef Prices Decline in Latest USDA Report
The USDA’s Tuesday afternoon report indicated lower wholesale boxed beef prices. Choice boxes fell by $2.89 to $320.61 per hundredweight (cwt), while Select boxes dropped $2.22 to $289.96. This resulted in a narrowing of the Choice/Select spread to $30.65. The USDA estimated that Tuesday’s federally inspected cattle slaughter reached 124,000 head, leading to a weekly total of 245,000. This figure is 2,000 head above the previous week, yet it reflects a decrease of 6,229 head compared to the same week last year.
Futures Market Summary
Oct 24 Live Cattle closed at $189.300, down $0.875.
Dec 24 Live Cattle closed at $187.950, down $1.325.
Feb 25 Live Cattle closed at $188.625, down $1.475.
Oct 24 Feeder Cattle closed at $250.025, down $0.050.
Nov 24 Feeder Cattle closed at $246.600, down $2.600.
Jan 25 Feeder Cattle closed at $244.025, down $2.925.
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 those of the author and do not necessarily reflect those of Nasdaq, Inc.
