Live Cattle Futures Soar to New Heights Amid Market Activity

Market Gains and Recent Trends in Cattle Futures

On Monday, live cattle futures experienced gains between $1.15 and $1.75 as they reached all-time highs on the spot contract. There has been no cash trade reported this week, with most traders busy compiling showlists. Last week’s prices were recorded at $196-197 in the South and $200 in the North. Meanwhile, feeder cattle futures rose by $1.37 to $2.20 on the day. The CME Feeder Cattle Index increased by $2.87, reaching $268.63 on January 3. The weekly OKC feeder cattle auction estimates approximately 7,500 head for sale today, a slight rise from the previous auction a couple of weeks ago, although significantly lower than last year. Sales showed a price increase of $2-6 for feeder steers and calves, with heifer calves up $2-7, and feeder heifers rising by $3-4.

Commitment of Traders Report Highlights

The weekly CFTC Commitment of Traders report, delayed until Monday afternoon, revealed that managed money in live cattle increased their net long position by just 626 contracts, bringing the total to 129,195 contracts as of December 31. In feeder cattle, the net long position reached a record 21,929 contracts, after a notable increase of 1,614 contracts as of last Tuesday.

Wholesale Beef Prices and Slaughter Estimates

USDA’s afternoon report showed a rise in wholesale Boxed Beef prices, with the Chc/Sel spread narrowing to 23.77. Choice boxed beef rose by $1.86, hitting $327.10 per hundredweight, while Select saw a more substantial jump of $6.61, reaching $303.33. The USDA estimated the federally inspected cattle slaughter for Monday at 109,000 head, which is down by 14,000 heads from last Monday but an increase of 5,106 heads compared to the same Monday last year.

Cattle Futures Closing Prices

Feb 25 Live Cattle closed at $195.200, up $1.150.

Apr 25 Live Cattle closed at $197.275, up $1.275.

Jun 25 Live Cattle closed at $192.225, up $1.550.

Jan 25 Feeder Cattle closed at $266.300, up $1.475.

Mar 25 Feeder Cattle closed at $265.550, up $1.375.

Apr 25 Feeder Cattle closed at $266.200, up $1.800.

On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view 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.