Cattle Market Update: Cattle Futures Show Mixed Movement
Live cattle futures ended mostly steady to 30 cents higher for nearby contracts on Friday, despite February futures dropping $3.825 for the week. Cash trade saw prices of $208 in the North, down $2-$4 from the previous week, while sales in the South came in at $206, reflecting a $2 decrease.
Feeder Cattle Futures Decline
Feeder cattle futures faced losses ranging from 10 to 40 cents on Friday, with March prices decreasing by $10.825 this past week. The CME Feeder Cattle Index dropped another $2.05 from the previous day, landing at $275.59 on February 6.
Traders Adjust Positions
According to Commitment of Traders data, speculators reduced their positions in live cattle futures, cutting back 6,535 contracts from their previous record net long position. As of Tuesday, they held 150,374 contracts. In the feeder cattle sector, traders had a net long position of 28,175 contracts by February 4, down 704 contracts from the previous week.
Wholesale Beef Prices on the Decline
The USDA’s Friday PM report indicated a decrease in wholesale Boxed Beef prices, with the Chc/Sel spread reported at $8.97. Choice boxes fell by $2.11 to $321.87 per cwt, while Select boxes decreased by $1.87 to $312.90. The USDA estimated the week’s federally inspected cattle slaughter at 584,000 head, which is 16,000 head lower than last week and down 33,013 from the same week last year.
Closing Prices for Live and Feeder Cattle
Feb 25 Live Cattle closed at $200.775, up $0.150,
Apr 25 Live Cattle closed at $196.775, unchanged,
Jun 25 Live Cattle closed at $192.100, up $0.275,
Mar 25 Feeder Cattle closed at $264.900, down $0.400,
Apr 25 Feeder Cattle closed at $264.825, down $0.175,
May 25 Feeder Cattle closed at $263.600, down $0.100.
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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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