Strong Gains for Live Cattle Futures as Market Shows Signs of Recovery

Cash Trade and USDA Reports Provide Insight into Cattle Market Dynamics

Live cattle futures saw increases of $1.20 to $1.35 across most contracts on Monday. Last week, cash trade prices were recorded at $196-197 in the South and $200 in the North. Meanwhile, midday feeder cattle futures also experienced a rise of $1.55 to $1.75. The CME Feeder Cattle Index noted a gain of $3.99 from the previous day, reaching $265.76 on January 2. At the weekly OKC feeder cattle auction, an estimated 7,500 head are available today, marking a slight increase from previous sales but significantly lower than last year’s figures.

In the Monday morning report from the USDA, wholesale Boxed Beef prices increased. Choice boxes were up by $2 to $327.24/cwt, while Select boxes climbed $4.40 to $301.12. Furthermore, the USDA estimated federally inspected cattle slaughter for last week at 498,000 head, which is 54,000 head more than the prior week but down by 44,462 head compared to the same week last year.

Feb 25 Live Cattle are at $195.275, up $1.225;

Apr 25 Live Cattle are at $197.250, up $1.250;

Jun 25 Live Cattle are at $192.025, up $1.350;

Jan 25 Feeder Cattle are at $266.525, up $1.700;

Mar 25 Feeder Cattle are at $265.725, up $1.550;

Apr 25 Feeder Cattle are at $266.150, up $1.750.

On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information and data provided are for informational purposes only. For further details, 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.