In recent trading sessions, live cattle futures experienced declines, with prices dropping between $3.10 and $4.50 on Friday. This downturn was influenced by a weaker equity market, prompting a risk-averse behavior among investors. The June futures saw a decline of $1.20 over the past week. In terms of cash trade, reports indicated prices of $235 in Texas and between $233 and $238 in Kansas last week. In the Northern markets, trades were recorded at $380 dressed, while prices in Nebraska ranged from $240 to $242, reflecting a steady situation with a slight decrease of up to $2 compared to the previous week.
Feeder cattle futures faced similar downward pressure, closing lower on Friday with losses ranging from $4.75 to $5.10. August futures were down $3.72 throughout the week. By June 12, the CME Feeder Cattle Index recorded a slight increase of $1.25, resulting in an average price of $317.10.
The Commitment of Traders data released on Friday indicated that managed money held a net long position of 137,836 contracts in live cattle futures and options as of June 10, reflecting an increase of 6,031 contracts. Speculative traders in the feeder cattle segment added 1,135 contracts to their existing record net long position, which now stands at 35,962 contracts as of Tuesday.
On Friday afternoon, the USDA reported an increase in National Wholesale Boxed Beef prices. The spread between Choice and Select beef set at $14.38. Choice boxes experienced a rise of $1.16, reaching $377.88, while Select boxes increased by 43 cents to $363.50 per hundredweight. According to USDA estimates, the federally inspected cattle slaughter for the past week was about 558,000 head, marking a decline of 24,000 head from the previous week and down by 57,083 head compared to the same week last year.
The closing prices for various futures contracts on June 25 were as follows:
Live Cattle:
These adjustments in the futures market reflect ongoing dynamics within the cattle trade, underscoring the importance of market awareness for investors and traders alike.
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