Cattle Futures Dip Amid Mixed Market Signals
Market Overview: Live and Feeder Cattle Futures Decline
On Monday, live cattle futures took a hit, falling between $1.25 and $2.05 for nearby contracts. Deferred contracts also slipped, closing down by 7 to 52 cents. Last week, cash traded between $191 and $192 in the South, while transactions in the North reached as high as $195 to $196. No trades were reported on Monday as most participants focused on preparing showlists.
Feeder Cattle Trends: Prices Down with Mixed Auction Results
Feeder cattle futures experienced a decline of $1.10 to $2.10 in the front months on Monday, with back months falling by 75 to 97 cents. The CME Feeder Cattle Index decreased by 86 cents from the previous day, settling at $261.73 on December 13. In terms of auction activity, the weekly OKC feeder cattle auction saw an estimated 7,500 head sold on Monday. Though this figure exceeded the same week last year, it fell short of last week’s numbers. Prices for feeder steers rose by $5 to $10, while calves increased by $8 to $13. Feeder heifers and heifer calves remained steady.
Production and Pricing Updates: Boxed Beef Prices Increase
According to the USDA’s afternoon report, wholesale boxed beef prices rose. Choice boxes were priced up by 98 cents, reaching $317.37 per hundredweight (cwt), while Select boxes increased by $5.71 to $289.57. The USDA estimated that Monday’s federally inspected cattle slaughter was 118,000 head, which is 1,000 head lower than the previous Monday and down 5,745 from a year ago.
Cattle Futures Closing Prices
Dec 24 Live Cattle closed at $192.025, down $1.625.
Feb 25 Live Cattle closed at $189.975, down $2.050.
Apr 25 Live Cattle closed at $191.750, down $1.250.
Jan 25 Feeder Cattle closed at $255.550, down $2.100.
Mar 25 Feeder Cattle closed at $256.375, down $1.300.
Apr 25 Feeder Cattle closed at $257.425, down $1.100.
On the date of publication, Austin Schroeder did not hold any positions, whether directly or indirectly, in the securities mentioned herein. All information and data in this article are provided 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.
