Cattle Futures Show Gains Amid Week's Quiet Cash Trade

Cattle market shows gains, with live cattle futures rising significantly. However, cash trade remains subdued with limited sales. Investors might notice this volatility impacting stock prices.

Date: 15-03-2025

AI Rating: 6

Overview of Market Condition: The report indicates positive movement in live cattle futures, with gains ranging from 80 cents to $1.07 reported at midday. Feeder cattle also saw gains of 80 cents to $1.42. This uptick in futures could be a trackable indicator of growing market sentiment.

Cash Trade Situation: Despite the positive movement in futures, cash trade has been relatively quiet. The recent sales in Kansas were at $200, with later bids reported between $202-205. The muted cash activity may cause some concerns among investors about market stability in this sector.

Wholesale Beef Performance: The National Wholesale Boxed Beef report shows a weakening trend, with narrow price gaps and declining prices for choice boxes and select options. Choice boxes decreased by $1.82 to $317.87/cwt while Select dropped by $1.16 to $306.32. A decrease in boxed beef prices can strain profit margins for beef producers, possibly influencing stock prices negatively.

Slaughter Rates: The USDA's slaughter estimates indicate a higher weekly total of 483,000 head, which is 16,000 more than the previous week and larger than the same week last year. Increased slaughter rates suggest robust supply levels that could affect market prices and profitability.

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