Live Cattle Futures Face Downward Trends Despite Cash Strength
Live cattle futures experienced a decline at midday today, with contracts falling by 10 to 20 cents. However, the nearby December contracts increased by 22 cents, benefiting from a strong cash market. Recent early cash transactions have reported trades of $191 in Kansas and $193 in Nebraska this Wednesday, along with bids reaching $195 in northern regions. An online auction on the Central Stockyards Fed Cattle Exchange indicated live sales at $192 for two out of four lots. Notably, there were again no deliveries made against December live cattle on Wednesday. Feeder cattle are seeing gains ranging from 37 to 77 cents, while the CME Feeder Cattle Index decreased by 16 cents from the previous day, settling at $261.46 on December 10.
Export Sales Show Strong Demand for 2024 Beef
This morning’s Export Sales report revealed that 10,989 metric tons (MT) of beef for 2024 were sold for the week ending December 5, with an additional 5,409 MT designated for 2025. These combined sales represent a three-week high and are 4.57% larger than the same period last year. Among the buyers, Japan accounted for 6,400 MT, while South Korea purchased 4,900 MT. The week also saw shipments reach 15,065 MT, the highest in three weeks, with South Korea receiving 4,500 MT and Japan 2,900 MT.
Boxed Beef Prices Increase
In the latest USDA wholesale Boxed Beef report released Thursday morning, prices showed an upward trend. Choice boxes climbed by $4.16 to $315.39 per hundredweight, while Select boxes increased by $1.93 to $280.04. The USDA estimated the slaughter of federally inspected cattle on Wednesday at 125,000 head, bringing the weekly total to 364,000 head. This figure is down by 3,000 head compared to the previous week and 14,814 less than the same week last year.
Current Live and Feeder Cattle Futures Prices
Dec 24 Live Cattle are priced at $192.475, up $0.225.
Feb 25 Live Cattle are priced at $191.175, down $0.200.
Apr 25 Live Cattle are priced at $192.500, down $0.125.
Jan 25 Feeder Cattle are priced at $258.675, down $0.375.
Mar 25 Feeder Cattle are priced at $258.800, down $0.575.
Apr 25 Feeder Cattle are priced at $259.400, down $0.775.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
