Cattle Futures Slide Ahead of Key Cattle on Feed Report

Cattle futures are lower as traders pull back ahead of the Cattle on Feed report. Prices show mixed movements but reflect increasing cash sales. Market expectations for lower placements and marketings may impact stock prices in the cattle industry.

Date: 22-03-2025

AI Rating: 5

Market Conditions: Live cattle futures are currently down by 35 to 90 cents, indicating a loss of early strength as traders reassess positions ahead of the monthly Cattle on Feed report. This fluctuation suggests a cautious market, reflecting uncertainty that could affect investor sentiment.

The activity at the Fed Cattle Exchange auction, with sales of 490 head at a price range of $210-$210.50, shows a strong cash market, particularly for April futures. The cash trade has commenced at $210 in the South and is noted to have increased from $203 last week, implying strengthening demand that might support future price stability.

Projected Trends: Analysts predict February placements of cattle will decrease by 14% compared to last year, and marketings will decline by 8.1%. This lower supply estimate aligns with the market's expectations and demonstrates a cautious approach that could exert downward pressure on prices in the medium term.

USDA Findings: The USDA reported higher prices in the National Wholesale Boxed Beef report, with Choice boxes rising by 34 cents to $329.95/cwt, and Select boxes up $1.74 to $310.52. This uptick might indicate some stabilization in the beef market, which could have a positive influence on cattle prices. However, the estimated cattle slaughter at 114,000 heads is down 43,000 from the previous week and 30,673 from the same week last year, showcasing a tightening supply that may affect revenue flows in the livestock sector.

Overall, while there are some positive signs in cash sales and boxed beef prices, the anticipated declines in placements and marketings likely project a mixed sentiment within the cattle market.

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