Cattle Futures Update: Market Insights and Trends
On Thursday, live cattle futures saw a rise ranging from 67 cents to $1.90. The cash cattle market has been relatively subdued this week, with bids around $208 emerging in Nebraska. During Wednesday’s online auction at the Central Stockyards Fed Cattle Exchange, one of the 1,628 lots offered sold for $210 using the BidTheGrid method, with bids fluctuating between $204 and $206.50. Feeder cattle prices increased between $1.22 and $2, with the expiring April contract surging by $3.475. As of April 15, the CME Feeder Cattle Index decreased by 4 cents, averaging $288.03. It’s important to note that the markets will be closed on Good Friday, with Thursday’s trading concluding the week.
Looking ahead, the USDA’s Cattle on Feed report, expected this afternoon, is likely to reveal a 3.4% increase in March placements compared to the previous year, with marketings projected to rise by 0.7%. However, the cattle inventory on feed as of April 1 is anticipated to be down by 1.8% from last year.
In the latest Export Sales figures, a total of 17,470 metric tons of beef were sold during the week of April 10, marking a seven-week high. Japan emerged as the leading buyer, purchasing 7,700 metric tons, with South Korea acquiring 3,700 metric tons. However, shipments hit a three-week low at 14,615 metric tons, with South Korea receiving the largest share at 5,600 metric tons and Japan getting 3,500 metric tons.
According to the USDA National Wholesale Boxed Beef report released Thursday morning, prices are trending higher, with the choice/select spread narrowing to $17.66. Choice boxed beef increased by $1.34, reaching $334.87 per hundredweight, while select boxed beef went up by $2.82, settling at $317.21. Federally inspected cattle slaughter on Wednesday was estimated at 123,000 head, totaling 357,000 head for the week. This figure was 8,000 head higher than the previous week but shows a decrease of 11,140 head compared to the same week last year.
Here are the current futures prices for live cattle:
- Apr 25 Live Cattle: $208.950, up $1.875
- Jun 25 Live Cattle: $203.325, up $1.250
- Aug 25 Live Cattle: $199.625, up $0.675
In feeder cattle, the prices are as follows:
- Apr 25 Feeder Cattle: $293.425, up $3.475
- May 25 Feeder Cattle: $286.375, up $1.975
- Aug 25 Feeder Cattle: $290.675, up $1.225
These figures and trends highlight the ongoing dynamics in the cattle market. The rally in live cattle futures indicates a positive sentiment among traders. Conversely, the subdued cash trade shows that market participants remain cautious amid fluctuating inventory rates and export levels. The upcoming Cattle on Feed report will be critical in informing future market movements, as it provides insights into industry trends and consumer demand.
For those involved in the beef industry, staying updated on cattle market developments is crucial. Understanding the nuances of price changes and supply chain dynamics can have a significant impact on decision-making and profitability in this sector. The intersection of export activity and domestic supply levels remains a focal point for assessing overall market health and future projections in cattle farming and trading.
