Live Cattle Futures Show Gains Amid Stable Cash Trade
Strong Feeder Cattle Demand Drives Market Upwards
Live cattle futures are currently enjoying gains between 45 to 65 cents during Tuesday’s trading session. So far this week, cash trade has not been reported as many in the industry are compiling showlists. Last week’s cash prices were recorded at $196-197 in the Southern region and $200 in the Northern region. Meanwhile, feeder cattle futures rose by $1.55 to $2.00 on the same day. The CME Feeder Cattle Index climbed $2.87 from the previous day, reaching $268.63 on January 3. An estimated 7,580 head were sold at the weekly OKC feeder cattle auction on Monday, which marks a slight increase from a couple of weeks ago but remains below last year’s numbers. Prices for feeder steers and calves saw an increase of $2-6, while heifer calves jumped $2-7 and feeder heifers rose by $3-4.
In terms of beef exports, census data converted to a carcass basis reported November figures at 253.1 million pounds. This was a 5% rise compared to the previous month and a notable 10.4% increase from the same month last year.
The Commitment of Traders report from the CFTC was delayed until Monday afternoon. Managed money in live cattle has added just 626 contracts to their net long position, bringing it to 129,195 contracts as of December 31. In feeder cattle, a record net long position was reached at 21,929 contracts, reflecting an increase of 1,614 contracts as of last Tuesday.
According to the USDA, wholesale Boxed Beef prices reported higher numbers in the Tuesday morning update. The Choice/Select spread narrowed to $25.59. Choice boxes increased by $2.56 to $329.66 per hundredweight, while Select boxes were $0.74 higher at $304.07. Additionally, the USDA estimated that federally inspected cattle slaughter for Monday was at 109,000 head. This figure is down 14,000 head from last Monday but up by 5,106 head when compared to the same Monday last year.
Feb 25 Live Cattle are at $195.850, up $0.650.
Apr 25 Live Cattle are at $197.875, up $0.600.
Jun 25 Live Cattle are at $192.675, up $0.450.
Jan 25 Feeder Cattle are at $267.850, up $1.550.
Mar 25 Feeder Cattle are at $267.550, up $2.000.
Apr 25 Feeder Cattle are at $268.025, up $1.825.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are intended for informational purposes only. For more details, please refer to 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.
