Cattle Futures See Mixed Results Amid Quiet Cash Market

Cattle futures closed with mixed results as live cattle contracts rose while feeder cattle lowered. The cash market remains quiet. The latest trends and data could significantly influence investor decisions in the cattle market.

Date: 26-03-2025

AI Rating: 6

Live Cattle Futures: Live cattle futures saw an increase, settling contracts between 17 to 47 cents higher in nearby months. This upward trend noted in the nearbys indicates a potentially bullish sentiment for live cattle, though some deferred contracts experienced declines.

Cash Market Trends: The cash market showed an increase in movement last week, with prices ranging from $210 in the South to $212-216 in the North. This $7-8 increase is a positive signal that may encourage investment.

Feeder Cattle Futures: Feeder cattle futures closed lower with contractions between 40 to 80 cents, although the nearby March contract increased by 37 cents. The CME Feeder Cattle Index rose by 26 cents, reflecting a demand trend that could impact stock prices positively.

Average Prices and Auctions: The OKC feeder cattle auction reported an increase of $4-8 for steers and $3 to $12 higher for heifers, demonstrating a strong auction demand that investors may find favorable.

Cold Storage Data: Monthly cold storage data indicated a decline in beef stocks, with a 5.92% decrease from the previous month and a 2.27% decline from last year. Investors may see this reduction as a signal of lower supply, which could lead to price increases.

Wholesale Boxed Beef Report: The National Wholesale Boxed Beef report showed a rise in prices, with choice boxes increasing by $8.09 to $335.19/cwt. This positive trend could spur investor confidence in cattle stocks.

Slaughter Estimates: The USDA estimated the federally inspected cattle slaughter at 124,000 head, which is 6,000 head above the previous week and up 3,407 head from the same week last year. This increase in slaughter numbers may suggest market strength, bolstering the case for investors to consider better stock prices.

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