Live Cattle Futures Rise on Strengthening Cash Market

Live cattle futures received support from a robust cash market on Friday, showing gains of $3 to $4. Specifically, April futures increased by $7.625 over the week. Cash market transactions fell within the range of $196-198 in the southern regions, while trade in the north was more subdued, seeing sales at $200-202 on Friday. Additionally, an online Fed Cattle Exchange auction this morning revealed that one of the two lots listed sold for $203 using the BidTheGrid™ method. In the feeder cattle sector, prices climbed by $2.95 to $4.50 for most contracts at the close, with March futures rising by $2 this week. The CME Feeder Cattle Index noted a decrease of $2.32 on March 6, with an average price at $273.77.

As of March 4, speculators in live cattle futures and options reduced their net long positions by 10,843 contracts, settling at 110,468 contracts. In contrast, managed money in feeder cattle increased their net long positions with an addition of 736 contracts, totaling 28,880 contracts by last Tuesday.

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On Friday afternoon, National Wholesale Boxed Beef prices rose, and the Chc/Sel spread narrowed to $9.10. Choice boxed beef prices increased by $1.78 to $314.90 per hundredweight, whereas Select beef was $2.29 higher at $305.80. The USDA estimated this week’s federally inspected cattle slaughter at 578,000 head, which is 12,000 head more than the previous week but still down 5,995 head compared to the same week last year.

Closing prices for cattle futures were as follows:

• Apr 25 Live Cattle closed at $200.275, up $4.000;
• Jun 25 Live Cattle closed at $196.475, up $3.850;
• Aug 25 Live Cattle closed at $194.350, up $3.375;
• Mar 25 Feeder Cattle closed at $276.975, up $2.950;
• Apr 25 Feeder Cattle closed at $278.150, up $3.725;
• May 25 Feeder Cattle closed at $278.200, up $4.350;

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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