Live Cattle Futures Experience Solid Gains Amid Rising Auction Prices
Recent trading in live cattle futures has shown significant increases, ranging from 67 to 90 cents across most contracts. Last week, cash trades were recorded at $200-201 in the Southern markets, while in the North, live sales reached $202, with some sales even hitting $205. Feeder cattle futures also saw a boost, ranging from $1.02 to $2.825 higher in nearby contracts. As of January 10, the CME Feeder Cattle Index decreased by $1.25 from the previous day, settling at $277.30. The latest Weekly OKC feeder cattle auction reported the sale of 7,909 head, surpassing figures from the previous week. Prices for feeder steers and calves increased by $6-12, while feeder heifers were up between $4-8; calves recorded a notable increase of 10-13.
Speculative Funds Increase Positions in Cattle Futures
According to the Commitment of Traders report, speculative funds added 14,261 contracts to their net long position in live cattle futures and options as of January 7, reaching a net long total of 143,456 contracts. Managed money positions in feeder cattle set a record net long of 26,384 contracts as of last Tuesday, which marks an increase of 4,455 contracts over the past week.
Wholesale Beef Prices Experience Variability
The USDA’s wholesale Boxed Beef prices presented a mixed picture in the Tuesday AM report. The spread between Choice and Select narrowed to $13.81, with Choice boxes down 70 cents to $332.65 per hundredweight (cwt), while Select boxes rose $1.27 to $318.84. Additionally, USDA reported an estimated federally inspected cattle slaughter on Monday of 117,000—an increase of 8,000 from last Monday, and up by 8,958 head compared to the same Monday last year.
Current Cattle Futures Prices
Feb 25 Live Cattle are trading at $198.200, up $0.800,
Apr 25 Live Cattle stand at $199.100, up $0.900,
Jun 25 Live Cattle are quoted at $193.200, gaining $0.675,
Jan 25 Feeder Cattle are priced at $274.675, up $2.825.
Mar 25 Feeder Cattle are listed at $269.025, up $1.125,
Apr 25 Feeder Cattle are currently at $269.350, rising by $1.025.
On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data are provided solely for informational purposes. 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 those of Nasdaq, Inc.
