Live Cattle Futures Gain Amid Stronger Beef Prices
Live cattle futures saw gains ranging from a tick to 50 cents higher in the front months. Cash trade began earlier this week, with light sales reported in the South at $218-220, steady to $2 higher than last week. Feeder cattle futures displayed weakness throughout much of the session; however, late buying increased contracts by 30 to 35 cents, although May still closed down 37 cents. The CME Feeder Cattle Index rose by 38 cents on May 5, bringing the average price to $293.78.
Beef Export Data and Boxed Beef Prices
March beef exports, based on census data converted to a carcass basis, totaled 255.76 million pounds. This figure was slightly below last year’s but marked a three-month high.
The USDA’s National Wholesale Boxed Beef prices strengthened again on Tuesday afternoon. The Choice/Select spread narrowed to $11.70, with Choice boxes increasing by $1.10 to $344.67, while Select boxes rose by $4.90 to $332.97 per hundred pounds. The USDA estimated federally inspected cattle slaughter on Tuesday at 121,000 head, bringing the total for the week to-date to 230,000 head. This number represents an increase of 6,000 head from the previous week, but a decrease of 11,056 head compared to the same week last year.
Closing Prices for Cattle Futures
Jun 25 Live Cattle closed at $213.675, up $0.025.
Aug 25 Live Cattle closed at $209.375, up $0.300.
Oct 25 Live Cattle closed at $206.875, up $0.475.
May 25 Feeder Cattle closed at $295.700, down $0.375.
Aug 25 Feeder Cattle closed at $299.200, up $0.300.
Sep 25 Feeder Cattle closed at $297.875, up $0.325.
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.
