Live Cattle Futures Decline Amid Profit Taking and Technical Pressure

Live cattle futures experienced a significant decline on Thursday, with contracts dropping between $2.77 and $3.82. This pullback is attributed to profit-taking and mounting technical pressure. Cash trading began with Southern sales ranging from $218 to $220, while Northern sales peaked at $229. The Fed Cattle Exchange Online auction saw 558 of 1,304 head sold, with action in the South at $220 to $220.50, while BidTheGrid™ sales closed at $222 to $225. Feeder cattle futures also extended their losses, showing declines of $3.40 to $6.35 across most contracts. The CME Feeder Cattle Index decreased by 24 cents on May 14, averaging $302.17.

Beef Export Sales and Shipment Data

According to recent Export Sales data, a total of 14,599 MT of beef was sold in the week ending May 8, marking a four-week high. Notably, South Korea was the leading buyer with 4,500 MT, followed by Japan with 3,400 MT. However, shipments declined to a three-week low of 13,643 MT. South Korea remained the top destination at 4,800 MT, while Japan received 3,900 MT.

Wholesale Boxed Beef Report and Cattle Slaughter Estimates

The Thursday PM National Wholesale Boxed Beef report indicated higher prices, with the Choice/Select spread narrowing to $10.72. Choice boxes increased by 54 cents to $349.90, while Select boxes rose $3.33 to $338.82 per hundred pounds. The USDA estimated Thursday’s federally inspected cattle slaughter at 120,000 head, bringing the weekly total to 459,000 head. This figure shows a decline of 10,000 head from the previous week and a decrease of 26,449 head compared to the same week last year.

Current Live and Feeder Cattle Futures Prices

Jun 25 Live Cattle closed at $211.175, down $2.775.

Aug 25 Live Cattle closed at $205.850, down $3.525.

Oct 25 Live Cattle closed at $202.675, down $3.825.

May 25 Feeder Cattle closed at $296.175, down $3.400.

Aug 25 Feeder Cattle closed at $295.825, down $6.150.

Sep 25 Feeder Cattle closed at $294.625, down $6.350.

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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.