Live Cattle Futures Surge as Cash Trade Kicks Off Nationwide

Live cattle futures experienced significant gains of 75 cents to $1.125 across most front months on Friday, while April future contracts increased by $2.90 over the week. Cash trading began on Friday, with southern sales reported at $203 and northern action reaching $205 to $206. In the online auction via the Fed Cattle Exchange from Central Stockyards, live sales recorded prices at $203 in Kansas, with additional sales ranging from $203.50 to $204 using the BidTheGrid™ method. Feeder cattle prices also climbed, with an increase of $1.125 to $1.75 in the nearby contracts as they closed on Friday. The March feeder contract rose by 57 cents this week. Additionally, the CME Feeder Cattle Index saw a resurgence, up $1.47 on March 13, settling at an average price of $282.72.

Commitment of Traders Report Reflects Strong Positions

The Commitment of Traders report released on Friday afternoon revealed that managed money added a total of 2,348 contracts to their net long position in live cattle futures and options, bringing the total to 112,816 contracts as of Tuesday. Meanwhile, speculative funds in feeder cattle reported a renewed net long position of 30,184 contracts by March 11, marking a 1,304 contract increase for the week.

Wholesale Beef Prices Show Weaknesses

The USDA’s National Wholesale Boxed Beef report from Friday afternoon indicated a drop in prices. The choice/select spread narrowed to $11.95, with Choice boxes decreasing by $1.53 to $318.27 per hundredweight (cwt), while Select boxes fell by $1.15 to $306.32. This week’s federally inspected cattle slaughter was estimated at 587,000 head, which is 9,000 more than the previous week but 10,391 less than the same week last year.

Live and Feeder Cattle Closing Prices

Apr 25 Live Cattle closed at $203.175, up $1.125.

Jun 25 Live Cattle closed at $199.350, up $1.075.

Aug 25 Live Cattle closed at $196.700, up $0.750.

Mar 25 Feeder Cattle closed at $281.975, up $1.750.

Apr 25 Feeder Cattle closed at $281.200, up $1.225.

May 25 Feeder Cattle closed at $282.650, up $1.125.

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 solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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