Beef Production Projections Increase Amid Mixed Cattle Futures

Beef Production Projections Increase. Live cattle futures slipped 75 cents while feeder cattle showed mixed performance. A notable rise in projected 2025 beef production could influence market prices positively, despite current futures performance.

Date: 12-03-2025

AI Rating: 5

Live Cattle Futures Performance: Live cattle futures closed the Tuesday trading session lower, settling down 75 cents at $1.02. This decline reflects a current market uncertainty and could potentially dampen stock prices for companies involved in cattle trading.

Cattle Slaughter Data: The USDA reported an estimated slaughter of 124,000 cattle, indicating an increase from previous weeks. While this may suggest stronger supply, the effects on prices can vary as they depend on demand dynamics.

Beef Production Projections: The WASDE report indicated projected beef production for 2025 will rise to 26.685 billion lbs, an increase of 120 million lbs from the previous month. This increase, particularly in the later quarters, signifies potential growth in supply that may eventually lead to a downward pressure on prices if demand does not keep pace.

Boxed Beef Prices: The National Wholesale Boxed Beef prices presented a mixed performance, where the Choice boxes experienced a $3.62 increase, reaching $321.20 per cwt. In contrast, Select boxes decreased slightly. This divergence can indicate varying demand within different beef segments.

Feeder Cattle Market: Feeder cattle contracts closed with mixed results, with some lower but others higher. This inconsistency indicates potential volatility in the feeder market, which might be reflective of broader trends in livestock trade.

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