Live Cattle Futures Show Mixed Trends Amid Market Fluctuations

Live cattle futures posted mixed results as April contracts rose while others fell. The cash trade remained strong last week but presents risks for future contracts. Investors should monitor changes in cattle prices closely.

Date: 19-03-2025

AI Rating: 6

Mixed Performance of Live Cattle Futures: The report indicates that live cattle futures exhibited mixed action, with April contracts rising by 35 cents while other contracts fell by 7 to 15 cents. This fluctuation can lead to uncertainty among investors, potentially creating volatility in stock prices related to the cattle market.

Cash Trade Insights: The strong cash trade observed last week at $203 in the South and Northern action at $205-206 could have a positive influence on market sentiment. However, the uncertainty regarding the start of the cash trade this week might add pressure on stock prices.

Feeder Cattle Trends: Feeder cattle futures increased by 35 cents in the front months, while May saw a slight decline. The rise in the CME Feeder Cattle Index, reaching $284.11, indicates positive market sentiment but may be tempered by slight declines in some future contracts. This suggests a potential instability moving forward.

Wholesale Boxed Beef Report: An increase in USDA’s National Wholesale Boxed Beef report is also noteworthy, as it reflects a strong demand for beef products, with the Choice boxes rising by $2.16 to $323.32/cwt. This demand can positively influence profitability of related companies, potentially pushing their stock prices up.

Slaughter Estimates: The estimated federally inspected cattle slaughter at 123,000 head is down compared to the previous week and last year, which may raise concerns about supply in the market. Investors should be aware that a decrease in supply coupled with increased demand could lead to rising prices.

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