Midday Cattle Futures Show Positive Trends Amid Import Restrictions
Live and Feeder Cattle Futures Experience Gains at Midday Trading
Live cattle futures are trading higher, with gains ranging from a nickel to 27 cents at midday on Monday. Last week, cash trade settled between $186 and $188, primarily around $187.
Feeder Cattle Prices Climb; Auction Activity Steady
Feeder cattle are seeing increases of $1.40 to $1.80 at midday. The CME Feeder Cattle Index rose by 27 cents to reach $254.54 on November 21. The weekly feeder cattle auction from Oklahoma City reported an estimated 7,000 head for sale, which is slightly lower than last week but higher compared to the same week last year.
Health Concerns Prompt Increased Import Restrictions
On Friday, Mexico’s Chief Veterinarian Officer notified the USDA of a New World Screwworm case in a southern border state. Consequently, APHIS has tightened import restrictions on animal products from Mexico, which may restrict feeder cattle imports.
Cattle on Feed Report Shows Growth Compared to Last Year
The Cattle on Feed report released on Friday revealed that October placements totaled 2.286 million head, a 5.35% increase from the previous year and surpassing the average trade estimate of a 3.8% rise. Meanwhile, October marketings showed a 4.65% increase at 1.845 million head, which fell short of the anticipated 5.2% increase. As of November 1, the on-feed inventory reached a record for the month at 11.986 million head, reflecting a 0.25% increase from last year, contrary to the expected 0.1% decrease.
Wholesale Beef Prices and Slaughter Rates Rise
USDA’s Monday AM report indicated that wholesale Boxed Beef prices increased. Choice boxes rose by $2.36 to $309.77 per hundredweight, while Select climbed 77 cents to $272.84. The spread between Choice and Select widened to $36.93. USDA estimates that last week’s federally inspected cattle slaughter reached 631,000 head through Saturday, up 25,000 head from the previous week and significantly higher than the same week last year due to Thanksgiving being scheduled later this year.
Cattle Futures Snapshot
Dec 24 Live Cattle are priced at $186.900, up $0.125,
Feb 25 Live Cattle stand at $188.250, up $0.050,
Apr 25 Live Cattle are at $190.225, up $0.275,
Jan 25 Feeder Cattle are at $256.025, up $1.725,
Mar 25 Feeder Cattle are at $254.800, up $1.675,
Apr 25 Feeder Cattle are at $255.750, up $1.400.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. 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 the views of Nasdaq, Inc.
