Cattle Futures Close Strong with Notable Price Increases

Cattle markets see gains as live and feeder cattle futures rise significantly. With increased cash trade and higher USDA reports, market sentiment remains positive.

Date: 18-03-2025

AI Rating: 7

Status Overview: The report indicates a robust performance in the cattle futures market with live cattle futures closing higher by $1.70 to $2.15. This strong pricing signals positive market dynamics, which could influence stock prices of relevant agricultural and food processing companies.

Cash Trading Trends: Cash trade for cattle showed considerable strength, with settlements reported at $203 in the South and $205-206 in the North. This upward trend in cash prices typically augurs well for companies involved in the meat production industry, suggesting potential revenue boosts in the near term.

Feeder Cattle Performance: Feeder cattle also exhibited substantial gains, with prices increasing by $2.65 to $3. This rate of growth may positively affect the profitability margins of companies reliant on feeder cattle, as it reflects improved market conditions.

USDA Beef Report: The National Wholesale Boxed Beef report showed that Choice boxed beef climbed $2.89 at $321.16/cwt and Select rose $1.58 at $307.90. Such increases in boxed beef prices could have implications for meat-producing firms, as higher input costs generally push up profit margins if passed onto consumers.

Cattle Slaughter Rates: Although slaughter numbers were slightly down with 114,000 head processed, they remain indicative of a stable supply chain. The market's ability to sell cattle at higher prices even amidst gradually decreasing slaughter suggests a healthy demand environment which supports stock price resilience.

Stocks: