Live and Feeder Cattle Futures Struggle Amid Declining Prices
Cattle Markets Face Setbacks Ahead of Holiday Closure
Live cattle futures experienced losses on Friday, declining by $1.80 to $2.27, with February futures down $3.025 over the week. Cash prices settled at $202-203 in the South and $203 in the North, a drop from last week’s $205 and $208, respectively. In feeder cattle futures, values decreased by $1.30 to $1.62 during the session, although March futures managed a weekly gain of $1.45. The CME Feeder Cattle Index rose by $1.89, reaching $276.23 as of February 11. Note that markets will close on Monday due to President’s Day, but will reopen as usual on Tuesday.
Shifts in Speculator Contracts for Cattle Futures
As of Tuesday, managed money speculators reduced their net long positions in live cattle futures and options by 14,665 contracts, bringing the total to 135,709 contracts. In contrast, spec funds added 192 contracts to their net long in feeder cattle, increasing it to 28,367 contracts by February 11.
Boxed Beef Prices and Slaughter Estimates Show Decline
The National Boxed Beef prices saw a decrease of $2.70 across all cuts, with the Choice/Select spread narrowing to $7.56. Current prices are $314.70 per hundredweight for Choice boxes and $307.14 for Select. According to USDA estimates, this week’s federally inspected cattle slaughter reached 561,000 head—a decline of 23,000 from last week and 47,466 below the same week last year.
Closing Prices for Cattle Futures
Feb 25 Live Cattle closed at $197.750, down $1.800.
Apr 25 Live Cattle closed at $194.250, down $2.275.
Jun 25 Live Cattle closed at $190.450, down $1.975.
Mar 25 Feeder Cattle closed at $266.350, down $1.625.
Apr 25 Feeder Cattle closed at $266.425, down $1.550.
May 25 Feeder Cattle closed at $265.000, down $1.300.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy
here.
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