Strong Midday Gains for Live Cattle Futures as Beef Exports Surge
Market Insights on Cattle Futures and Beef Exports
Live cattle futures have shown stronger midday performance on Friday, rising by 50 to 75 cents for nearby contracts. This week, cash trade has been relatively slow. On Thursday, sales figures were reported at $199 in the South and between $199.50 and $200 in the North. Meanwhile, feeder cattle prices have increased by $1.50 to $2 as of midday. The CME Feeder Cattle Index rose by 30 cents, landing at $278.81 on February 19.
In terms of beef exports, sales reached 21,481 metric tons during the week ending February 13, marking a notable 64% increase from the previous week. Notably, Japan accounted for 9,800 metric tons, with South Korea purchasing 3,400 metric tons. However, export shipments sank to a four-week low of 14,193 metric tons, with Japan receiving the largest share at 4,100 metric tons, followed by South Korea at 3,800 metric tons.
The afternoon Cattle on Feed report scheduled for Friday is anticipated to indicate a 0.8% decline compared to February 1 of the previous year. January placements are expected to rise by 2.2%, while marketings are projected to climb by 2.1%.
This morning’s USDA National Wholesale Boxed Beef report presented a mixed picture. The Choice/Select spread tightened to $7.79. Choice beef boxes decreased by 76 cents, now priced at $311.87 per hundredweight, while Select boxes increased by 90 cents to $304.08. Additionally, Thursday’s federally inspected cattle slaughter was estimated at 117,000 head, bringing the week-to-date total to 447,000 head. This figure reflects a decrease of 7,000 head from the prior week and 13,012 head below the same week last year.
Feb 25 Live Cattle are priced at $198.300, reflecting a gain of $0.675.
Apr 25 Live Cattle stand at $194.475, also up by $0.675.
Jun 25 Live Cattle are quoted at $190.725, marking an increase of $0.750.
Mar 25 Feeder Cattle are currently at $268.500, which is up by $1.675.
Apr 25 Feeder Cattle are listed at $268.225, an increase of $1.850.
May 25 Feeder Cattle are at $266.825, up $1.750.
On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, in the securities mentioned in this article. All information and data are provided solely for informational purposes. For full details, please refer to the Barchart Disclosure Policy here.
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