Strong Gains in Cattle Futures Amid Declining Cash Trade
Live cattle futures experience notable increases on the market.
On Monday, live cattle futures noted gains ranging from $1.10 to $1.50. This day marked the first notice for February live cattle, which saw no deliveries issued. Last week, cash trade reported $208 in the North, while Southern sales were recorded at $206—a decrease of $2 from the previous week.
Feeder cattle also see upward movement in futures pricing.
Feeder cattle futures experienced a rally, spiking by $2.70 to $3.25. The CME Feeder Cattle Index rose by 17 cents from the previous day, reaching $275.76 on February 7. The Oklahoma City weekly feeder cattle auction on Monday estimated about 4,743 head available for sale. This figure is nearly half of last week’s and marks a decline compared to the same week last year. Sales for steers remained steady to $5 lower, while lighter calves fell by $12. Interestingly, feeder heifers increased by $5, whereas heifer calves decreased by $3 to $6.
USDA reports an uptick in Boxed Beef prices this week.
The USDA’s wholesale Boxed Beef prices increased in the Monday PM report, with the Choice/Select spread at $9.58. Choice boxes rose by $1.63 to $323.50 per hundredweight (cwt), and Select boxes were up by $1.02, reaching $313.92. Additionally, the USDA estimated Monday’s federally inspected cattle slaughter at 100,000 head, which is 15,000 head below last week and down 14,805 head compared to the same week last year.
Feb 25 Live Cattle closed at $201.875, up $1.100,
Apr 25 Live Cattle closed at $198.125, up $1.350,
Jun 25 Live Cattle closed at $193.200, up $1.100,
Mar 25 Feeder Cattle closed at $268.125, up $3.225,
Apr 25 Feeder Cattle closed at $267.775, up $2.950,
May 25 Feeder Cattle closed at $266.325, up $2.725,
On the date of publication, Austin Schroeder did not hold any positions in the mentioned securities either directly or indirectly. All information and data in this article are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
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