Live Cattle Futures Decline Amid Falling Boxed Beef Prices
Cash Trade Update and Cattle Slaughter Rates
Live cattle futures dropped 80 cents to $2.125 on Friday, continuing the trend as Boxed Beef values fell. The December futures were down $2.22 for the week. This week’s cash trade reported Northern sales at $186-188 and Southern sales at $187. In the Central Stockyards Fed Cattle Exchange, none of the 3,044 head offered sold, with bids ranging from $185 to $187.50. Additionally, feeder cattle futures declined $1.67, closing at $2.90 for Friday, with November futures down $1.45 this week. The CME Feeder Cattle Index noted a decrease of 6 cents, settling at $249.86 on November 7.
Speculator Activity and Wholesale Beef Prices
CFTC data revealed that short positions in live cattle futures and options were reduced by 731 contracts, leaving a net long of 97,838 contracts as of November 5. On the other hand, managed money in feeder cattle futures and options increased their net long position by 2,414 contracts, bringing the total to 11,374 contracts.
Latest Boxed Beef Reports and Slaughter Estimates
The USDA’s Friday afternoon report indicated that wholesale Boxed Beef prices decreased once again. Choice boxes dropped $1.53 to $307.93 per hundredweight (cwt), while Select fell 53 cents to $279.19. This narrowed the Choice/Select spread to $29.74. The USDA also estimated the weekly federally inspected cattle slaughter at 619,000 head, which was 4,000 head higher than the previous week but down 3,952 head compared to the same week last year.
Current Live and Feeder Cattle Prices
Here are the latest prices:
- Dec 24 Live Cattle closed at $183.700, down $2.125.
- Feb 25 Live Cattle closed at $185.300, down $2.125.
- Apr 25 Live Cattle closed at $186.525, down $1.725.
- Nov 24 Feeder Cattle closed at $245.425, down $2.225.
- Jan 25 Feeder Cattle closed at $241.425, down $2.900.
- Mar 25 Feeder Cattle closed at $239.375, down $2.875.
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 here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
