Live Cattle Futures Rise as Cash Trade Holds Steady
Live cattle futures experienced a strong week, gaining up to $1.175 on Friday, driven primarily by the December contracts keeping pace with cash trade. Over the course of the week, futures increased by $3.825.
Current Market Overview
This week, cash trade settled between $186 and $188, with most deals occurring at $187. At the Central Stockyards Fed Cattle Exchange, 587 of the 2,344 head listed were sold Friday morning. Sales averaged between $187 and $187.50, with some transactions reaching $189 through their BidTheGrid™ method. Meanwhile, feeder cattle saw gains ranging from 625 cents to $1.30 on Friday, with January contracts up $7.07 for the week. The CME Feeder Cattle Index rose by 27 cents to $254.54 on November 21.
Cattle on Feed Report Highlights
The Cattle on Feed report released Friday reflected October placements at 2.286 million head, a 5.35% increase compared to last year and higher than the expected 3.8%. Marketings for October were slightly up by 4.65% at 1.845 million head, but fell below the projected 5.2% increase. Additionally, the November 1 on-feed inventory reached a record high for the month at 11.986 million head, which is a 0.25% rise from last year, contrasting with the anticipated 0.1% drop.
Traders’ Positions and Beef Exports
Current Commitment of Traders data reveal that speculative funds in live cattle futures and options increased their net long positions by 5,098 contracts to 108,415 as of November 19. In feeder cattle, managed money raised their net long positions by 1,608 contracts, bringing the total to 13,667 contracts as of Tuesday.
As per the Export Sales report, total beef exports have amounted to 698,723 metric tons, representing a 2.36% decline from last year. However, overall commitments, including unshipped sales, are up 0.9% at 829,337 metric tons.
Boxed Beef Prices and Slaughter Estimates
In Friday’s USDA wholesale Boxed Beef report, prices were mixed. Choice boxes increased by 62 cents to $307.41 per hundredweight, while Select boxes fell by 85 cents to $272.07, resulting in a widening Chc/Sel spread of $35.34. The USDA also estimated this week’s federally inspected cattle slaughter at 631,000 head through Saturday, marking a rise of 25,000 head from the previous week and significantly exceeding last year’s figures, influenced by Thanksgiving falling a week later this year.
Closing Prices for Cattle Futures
December 24 Live Cattle closed at $186.775, up $1.175.
February 25 Live Cattle closed at $188.200, up $0.775.
April 25 Live Cattle closed at $189.950, up $0.425.
January 25 Feeder Cattle closed at $254.300, up $0.850.
March 25 Feeder Cattle closed at $253.125, up $1.025.
April 25 Feeder Cattle closed at $254.350, up $1.225.
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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
