Cattle Futures Gain Amid Slow Cash Trade and Higher Prices

Cattle futures rise as cash trade remains slow. USDA reports show light sales but overall boxed beef prices increase, indicating potential shifts in market dynamics.

Date: 27-03-2025

AI Rating: 6

Market Performance Overview: Live cattle futures experienced gains of 40 to 70 cents in recent trading, suggesting a moderately positive outlook for this segment. However, the cash trade has been slow, with light sales reported at $213, which could indicate weaker demand at this price level.

Feeder cattle futures reported gains of $1 to $1.50 for most contracts, except for a slight slip of 17 cents for March futures ahead of its expiration. The feeder cattle index also recorded a decline of 35 cents on March 25, with the average price settling at $286.90. This mix of price movements reflects volatility and varied investor sentiment in the sector.

Wholesale Beef Prices: The USDA's National Wholesale Boxed Beef report showed an increase in prices, with choice boxes rising by $3.11 to $338.30/cwt and select boxes rising by $2.48 to $316.53. The widening of the Chc/Sel spread to $21.77 signals that while live cattle prices might be fluctuating, there is still an upward trend in wholesale beef prices which can be a positive indicator for cattle producers.

Furthermore, the USDA estimated slaughter at 123,000 head on Wednesday, bringing the week-to-date total to 366,000, which is an increase from the previous week, potentially reflecting recovering demand. Compared to last year, the current figures show a slight increase, hinting at a strengthening market year over year.

Overall, while some futures prices have declined, the upward trends in boxed beef prices and increased slaughter rates provide a mixed but somewhat positive outlook for cattle stock prices.

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