Cattle Futures See Gains Amid Weaker Boxed Beef Prices

Cattle futures reported gains last week with live cattle prices up to $203-206. However, weaker prices in the National Wholesale Boxed Beef report could impact sentiment. The market sees a boost from speculative buying, but lingering price weaknesses persist.

Date: 15-03-2025

AI Rating: 6

Cattle Futures Gains and Market Insights

Live cattle futures achieved notable gains, with increases around 75 cents to $1.125, and April was up by $2.90 for the week. These developments reflect positively on future pricing, potentially enhancing market confidence. The cash trade also indicated price activity at $203 in southern sales and slightly higher in northern sales at $205-206.

However, a revealed weakness in the USDA’s National Wholesale Boxed Beef report noted a decline in the prices of choice and select boxed beef. The Choice boxes dropped by $1.53 to $318.27 per hundredweight, and Select fell by $1.15 to $306.32, potentially signaling softness in broader beef demand.

Notable market activity was reported through the Commitment of Traders report, which demonstrated a net long position among managed money in live cattle futures, indicating confidence in future price increases. The total managed money net long in live cattle futures rose to 112,816 contracts, a moderately positive sign.

Cash Trade Analysis

This market sentiment could influence stock prices of companies involved in the cattle or beef industry. The gains in live and feeder cattle prices may bolster revenues for these companies, despite the current weakness in boxed beef prices.

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