Cattle Futures Continue Strong Performance Amid Mixed Market Signals
Live cattle futures saw further gains on Thursday, with contracts rising by 80 cents to $1.05. Some cash sales in the South were reported at $201, with others reaching $202, reflecting a stable to $1 increase compared to last week. Feeder cattle futures also advanced, with prices up between a tick and $1.15. Meanwhile, the CME Feeder Cattle Index decreased by 63 cents from the previous day, settling at $277.55 on January 22.
Upcoming Report Could Impact Future Trends
Analysts are anticipating the release of the Cattle on Feed data on Friday afternoon. A survey conducted by Reuters projects that December placements will remain steady compared to last year, although estimates vary widely, with predictions ranging from a drop of 9.9% to an increase of 6.8%. Additionally, December marketings are expected to rise by 1.3% from December 2023, while the on-feed inventory is projected to decrease by 0.4% as of January 1 compared to last year.
Boxed Beef Prices and Slaughter Data Show Slight Declines
In the Thursday PM report, USDA wholesale Boxed Beef prices reported a decrease, with the Choice/Select spread at $13.75. Choice boxes fell by $1.06 to $330.96 per cwt, while Select boxes dropped 78 cents to $317.21. Additionally, the USDA estimated a federally inspected cattle slaughter of 123,000 head on Thursday, bringing the weekly total to 486,000 head, which is 2,000 head lower than the previous week but 1,658 head higher than the same period last year.
Current Futures Prices
Feb 25 Live Cattle closed at $201.100, up $1.050.
Apr 25 Live Cattle closed at $200.725, up $0.950.
Jun 25 Live Cattle closed at $195.700, up $0.800.
Jan 25 Feeder Cattle closed at $277.075, up $0.025.
Mar 25 Feeder Cattle closed at $274.075, up $1.000.
Apr 25 Feeder Cattle closed at $272.450, up $1.150.
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.
