Live Cattle Futures Experience Gains as Feeder Cattle Prices Rise
Monday Trading Overview: Cattle Prices on the Move
Live cattle futures are showing strength this Monday morning, with prices climbing between 90 cents to $1 higher. Last week’s cash trade settled around $199 in the South, and between $199 and $200 in the North, marking a drop of $3-4 from the previous week. Meanwhile, feeder cattle are making a midday rally, with contracts increasing by $3 to $3.55. The CME Feeder Cattle Index noted a 2-cent rise on February 20, hitting $278.84. During Monday’s OKC feeder cattle auction, there were 4,500 head available for sale—an increase from last week but still considerably lower than last year.
January Data Reflects Increased Placements and Marketings
The Cattle on Feed report released on Friday indicated that January placements rose by 1.73% from last year, totaling 1.822 million head. Marketings for January were also up by 1.41%, reaching 1.869 million head. However, the on-feed inventory as of February 1 decreased by 0.69%, now at 11.716 million head.
Speculators Adjust Positions Amid Market Activity
According to CFTC data, speculators reduced their net long positions by another 7,240 contracts for the week ending Tuesday, bringing the total to 128,469 contracts. In the feeder cattle segment, managed money remains at a record net long position of 30,069 contracts, showing an increase of 1,702 contracts for the week.
Wholesale Beef Market Shows Positive Trends
The USDA’s National Wholesale Boxed Beef report was positive on Monday, as the Choice/select spread widened to $10.11. Choice boxes surged by $2.97 to $313.74 per hundredweight, while Select saw a $1.02 increase to $303.63. Federally inspected cattle slaughter for the previous week was estimated at 563,000 head, which is up by 2,000 from the week before but down by 27,486 from the same week last year.
Feb 25 Live Cattle: $198.800, up $0.975
Apr 25 Live Cattle: $194.950, up $1.000
Jun 25 Live Cattle: $191.225, up $0.900
Mar 25 Feeder Cattle: $271.400, up $3.450
Apr 25 Feeder Cattle: $271.100, up $3.550
May 25 Feeder Cattle: $269.375, up $3.450
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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