Live Cattle Futures Pick Up Momentum
Live cattle futures made a remarkable leap on Friday, soaring by as much as $2.10 into the CoF report. Feeders also experienced a surge, wrapping up the week with an impressive 1.3% increase, pushing March prices up by $3.55. The USDA confirmed robust cash trades ranging from $180.50 to $184 with significant volume, mostly hovering $2-$3 higher at around $182. The CME Feeder Cattle Index mirrored this upward trend, climbing by 51 cents on February 22 to reach $245.
Positive Shift in Trader Data
The Weekly Commitment of Traders data revealed managed money traders holding a 50.5k contract net long position in cattle as of 2/20, positioning them with an 8k contract increase in net long for the week. Feeder cattle spec traders also saw growth in their net long positions, up by 200 contracts to 8.2k contracts.
Monthly Cattle on Feed Report Insights
The monthly Cattle on Feed report disclosed that there were 11.797 million head on feed as of February 1, reflecting a 0.4% increase compared to the previous year’s count in February. Placements stood 7.4% below the prior year, with 1.792 million head placed in January. Marketings in January were 1.844 million head, aligning with expectations.
Export Sales and Beef Prices Overview
The weekly Export Sales report revealed that 12.6k MT of beef was sold for export in the week ending 2/15, marking a decline of 24% from the previous week and a significant drop from the same week last year. Beef shipments totaled 15.7k MT for the week, bringing the season total to 101.5k MT. USDA’s Boxed Beef prices showed strength, with Choice up by 82 cents to $300.61 cwt and Select up by 50 cents to $286.31. Beef output for the week was reported at 491.8 million lbs, reflecting a decrease compared to the previous week and the same week in the prior year. Slaughter was down by 2.5% and 3.4% respectively, with 593k head harvested.
Impressive Closing Figures
Feb 24 Cattle closed at $185.600, up $2.100,
Apr 24 Cattle closed at $187.900, up $1.350,
Jun 24 Cattle closed at $183.875, up $1.175,
Mar 24 Feeder Cattle closed at $254.575, up $2.525
Apr 24 Feeder Cattle closed at $259.975, up $3.275
On the date of publication, Alan Brugler 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.
