Market Recap: Livestock Trends on Tuesday
In the world of cattle futures, Tuesday was a day of wavering fortunes. Live cattle futures traded within a narrow band, with April displaying a mere $1 range. The day predominantly favored the bear, however, with the market barely missing the unchanged mark by a mere 52 cents at the close. On the other hand, December managed to eke out a 2-cent gain, settling in the black. The mood was somewhat brighter for deferred feeder contracts, which closed firmer overall. Despite this, the front months faced moderate losses, ranging from 2 to 52 cents in the red by bell time.
Recent Sales and Pricing
Recent reports from the USDA shed light on the cash cattle market, with trades ranging from $185 to $190 last week. Friday’s figures revealed $186 sales for the South and $187-$188 for the North. Over at the OKC auction, feeder cattle sales were strong, totaling 6.4k head and boasting prices $2-$3 higher than the previous week. In contrast, the CME Feeder Cattle Index climbed to $251.02 on 3/18, now commanding a premium over the futures market.
Boxed Beef and Slaughter Rates
USDA’s Boxed Beef prices for Tuesday afternoon indicated $313.22 for Choice and $303.18 for Select. While Choice witnessed an 11-cent dip, Select saw a modest increase of 13 cents. Moreover, Tuesday’s cattle slaughter came in at 122k head, pushing the week-to-date total to 242,000. This figure is a subtle shift from the 233k head reported last week and the 251k head during the corresponding period last year.
Closing Numbers
As the markets wrapped up, the numbers told a story of slight declines: Apr 24 Cattle closed at $188.050 (down $0.525), Jun 24 Cattle at $185.000 (down $0.400), Aug 24 Cattle at $184.025 (down $0.325), Mar 24 Feeder Cattle at $250.675 (down $0.525), and Apr 24 Feeder Cattle at $255.075 (down $0.025).
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.
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