Live Cattle Futures Experience Losses Amid Stable Cash Markets

On Monday, live cattle futures are trading lower, with losses ranging from $1.15 to $1.55. The cash market saw limited activity last week, with most transactions holding steady at $209-210 in the South and $213-214 in the North. The dressed trade in the North settled between $335 and $345.

Feeder cattle futures are also down, decreasing another $1.12 to $1.70 as the month comes to an end. As of March 27, the CME Feeder Cattle Index fell by 86 cents, bringing the average price to $286.76. The estimated supply at the weekly Oklahoma City feeder cattle auction is around 5,000 head, which is more than last year’s figures but less than last week’s offerings.

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Commitment of Trader data released on Friday revealed an increase of 17,717 contracts in the net long position for live cattle futures and options as of March 25. This brings the total net long to 137,892 contracts. In the feeder cattle market, speculators are also increasing their net long positions, adding 2,935 contracts to reach 34,132 as of Tuesday.

The USDA’s National Wholesale Boxed Beef report published on Monday showed gains, with the Choice/Select spread widening to $14.66. Choice beef boxes rose by $1.01 to $333.83 per hundredweight (cwt), while Select boxes increased by 49 cents to $319.17. Last week, USDA estimated a federally inspected cattle slaughter of 609,000 head, which represents an increase of 49,000 head from the previous week and up 26,791 head from the same period last year.

April 25 Live Cattle is trading at $207.650, down $1.175.

June 25 Live Cattle is priced at $203.325, down $1.525.

August 25 Live Cattle stands at $199.725, down $1.275.

April 25 Feeder Cattle is at $285.850, down $1.700.

May 25 Feeder Cattle is at $283.800, down $1.375.

August 25 Feeder Cattle is at $288.550, down $1.125.

On the date of publication, Austin Schroeder did not have any direct or indirect positions in the securities mentioned in this article. All information within this article is for informational purposes only. For further details, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the author’s own and do not necessarily reflect those of Nasdaq, Inc.