Live Cattle Futures Surge as Beef Prices Climb

Live cattle futures increased by 42 cents to $1.37 on Friday, marking a notable $4.72 rise for February contracts over the week. Cash trades were reported between $200 and $201 in the Southern markets, while live sales reached $202 to $205 in the Northern markets, with beef prices at $320. Meanwhile, feeder cattle futures showed overall gains, with prices climbing by 75 cents to $1.10 and January contracts soaring by $3.125, propelled by a strong cash market. The CME Feeder Cattle Index also reported an increase of $3.55 from the previous day, now sitting at $278.55 as of January 9.

Beef export sales kicked off the new year impressively, totaling 5,599 metric tons (MT) for the week ending January 2. Shipments reached 10,980 MT, with Japan receiving 3,300 MT and South Korea receiving 2,800 MT.

The USDA’s Friday PM report highlighted rising wholesale boxed beef prices. The Choice/Select price spread narrowed to $18.70. Choice boxes gained $2.06, now priced at $332.84 per hundredweight (cwt), while Select boxes jumped $5.79 to $314.14. For the week, the USDA projected federally inspected cattle slaughter at 589,000 head through Saturday, which is 83,000 more than last week and up 54,098 head from the same week last year.

Feb 25 Live Cattle closed at $198.775, up $1.175.

Apr 25 Live Cattle closed at $199.475, up $1.200.

Jun 25 Live Cattle closed at $194.100, up $1.375.

Jan 25 Feeder Cattle closed at $272.350, up $3.125.

Mar 25 Feeder Cattle closed at $269.400, up $1.100.

Apr 25 Feeder Cattle closed at $270.175, up $1.100.

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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