Cattle Futures Show Declines Amid Mixed Auction Results

Cattle futures are experiencing losses of 25 to 65 cents, impacting potential investor sentiment. Cash trade indicates a strong market, but lower slaughter numbers could weigh on stock prices. With feeder cattle prices slightly higher, investors should monitor closely.

Date: 19-03-2025

AI Rating: 5

Market Overview: The report indicates that live cattle futures have dropped between 25 to 65 cents in recent trading sessions. Although cash market trading appears strong with prices at $203 in the South and $205-206 in the North, the declines in futures may signal investor caution.

Feeder Cattle Performance: Feeder cattle futures are also down, indicating a downtrend in prices along the front months. However, the CME Feeder Cattle Index increased by $0.55, showing some resilience in feeder cattle pricing. The latest data shows an average price of $283.27, slightly improving from prior levels.

Auction Insights: The report describes the performance of a weekly feeder cattle auction, noting increased sales prices for feeder steers ($5-10 higher) and steady prices for feeder heifers. This uptick could somewhat offset negative sentiment surrounding futures losses.

Wholesale Beef Report: According to the USDA National Wholesale Boxed Beef report, boxed beef prices showed higher indices: Choice boxes raised by $1.82 at $322.98/cwt, while Select boxes increased by $1.43. This signals healthy demand in the beef market, which could enhance pricing stability in the future.

Slaughter Rates: However, the report also points out a decrease in Federally inspected cattle slaughter, with current estimates at 114,000 head—down 1,000 from the previous week and significantly lower than this time last year by 3,837 head. This decline in slaughter numbers could affect supply, influencing future pricing trends negatively.

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