Live Cattle Futures Gain Ground Amid Mixed Market Signals
Key Metrics Show Positive Trends for Feeder Cattle and Beef Exports
Live cattle futures saw a moderate increase on Tuesday, with contracts rising between 37 to 55 cents for nearby months. While cash trading has yet to be reported this week, most are currently organizing showlists. Last week’s cash trade was noted at $196-197 in the Southern regions and $200 in the Northern regions. Meanwhile, feeder cattle futures experienced gains, with increases ranging from $2.10 to $2.37 in the front months. The CME Feeder Cattle Index also rose by $3.66 from the previous day, reaching $272.29 on January 6.
In terms of beef exports, Census data, when converted to a carcass basis, indicated that November beef exports totaled 253.1 million pounds. This reflects a 5% increase from the previous month and is 10.4% higher than the same time last year.
The USDA reported mixed results for wholesale Boxed Beef prices in their Tuesday afternoon update. The Choice/Select spread tightened slightly to $20.36, with Choice boxes decreasing by $1.31 to $325.79 per hundredweight, while Select boxes increased by $2.10 to $305.43. Furthermore, the USDA estimated that federally inspected cattle slaughter for Tuesday reached 126,000 head, bringing the week-to-date total to 235,000 head. This figure represents a decrease of 10,000 head from last week, yet is up by 46,329 head compared to the same week last year.
Live Cattle Prices:
Feb 25 Live Cattle closed at $195.575, up $0.375
Apr 25 Live Cattle closed at $197.775, up $0.500
Jun 25 Live Cattle closed at $192.775, up $0.550
Feeder Cattle Prices:
Jan 25 Feeder Cattle closed at $268.400, up $2.100
Mar 25 Feeder Cattle closed at $267.925, up $2.375
Apr 25 Feeder Cattle closed at $268.475, up $2.275
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.
