Live Cattle Futures Decline Amid Cash Sales and Market Adjustments

Live cattle futures are experiencing a decline on Monday, with losses ranging from 5 to 55 cents. Cash sales were reported at $197 in the southern markets, while light trade in the Northern regions was noted at $198 to $199, reflecting a decrease of $1 to $2 compared to the previous week. Feeder cattle also saw declines, with prices down by $1.07 to $1.12 in the front months. The CME Feeder Cattle Index increased by $1.42 as of February 27, bringing the average price to $281.06. Furthermore, the weekly auction in Oklahoma City featured 11,500 feeder cattle for sale, which significantly surpassed last week’s offerings, although early sales indicated a lower undertone.

CFTC Data: Spec Funds Reduce Long Positions

Recent data from the Commodity Futures Trading Commission (CFTC) highlights that managed money spec funds reduced their net long positions by another 7,158 contracts during the week of February 25, resulting in a net long of 121,311 contracts. In the segment of feeder cattle futures and options, speculative traders cut their record net long by 1,925 contracts, leaving them with 28,144 contracts as of Tuesday.

Market Overview: Boxed Beef Prices and Slaughter Estimates

The USDA’s National Wholesale Boxed Beef report, released on Monday morning, indicated mixed price trends. The Choice/Select spread rose to $11.32, with Choice boxes increasing by $1.30 to reach $313.13 per hundredweight, while Select boxes decreased by 24 cents to $301.81. The USDA estimated last week’s federally inspected cattle slaughter at 566,000 head, which is 3,000 head less than the previous week and reflects a decrease of 28,236 head from the same week last year.

Current Live and Feeder Cattle Prices

As of the latest updates:

• April 25 Live Cattle: $192.600, down $0.050
• June 25 Live Cattle: $188.225, down $0.550
• August 25 Live Cattle: $187.375, down $0.550
• March 25 Feeder Cattle: $273.850, down $1.125
• April 25 Feeder Cattle: $271.925, down $1.075
• May 25 Feeder Cattle: $270.050, down $1.075

At the time of publication, Austin Schroeder did not hold any positions (either directly or indirectly) in the securities mentioned. The information provided in this article is solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here.

The views expressed in this article reflect those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.