High Noon in the Cattle Trading Corral

The Current Landscape

As the sun hangs high in the sky over the cattle trading corral, the futures market paints a mixed picture. Fat cattle futures are dwindling in the October contract but showing a 17 cents uptick in the December contract. April futures have seen a balanced $1 movement on both sides of unchanged. Feeders are on the rise, gaining 40 cents thus far.

Market Performance

The USDA’s recent report on cash cattle trades from last week revealed prices ranging from $185 to $190, with Southern sales on Friday hitting $186 and Northern sales at $187-$188. Meanwhile, feeder cattle sales at the OKC auction totaled 6.4k head, fetching prices $2-$3 higher than the previous week. The CME Feeder Cattle Index on 3/15 stood at $250.86, showing an increase of $1.86.

Boxed Beef Prices and Slaughter Rates

Turning to Boxed Beef prices, the USDA reported a mixed bag on Tuesday morning with Choice climbing by $1.56 to $314.89 while Select slipped by 6 cents to $302.99. The latest data on FI cattle slaughter showed a total of 120k head on Monday, up from 111k head the week before, yet 4.6k head less than the same period last year.

Current Futures Figures

April 24 Cattle are at $188.150, down $0.425,

Jun 24 Cattle are at $184.925, down $0.475,

Aug 24 Cattle are at $184.150, down $0.200,

Cash Cattle Index was $185.400, from $184.63 last week,

Mar 24 Feeder Cattle are at $250.925, down $0.275

April 24 Feeder Cattle are at $255.200, up $0.100

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.