Live Cattle Futures Surge Amidst Strong Cash Trade

Live cattle futures have risen by $1.60 to $2, showcasing a robust cash trade environment. This surge indicates potential bullish sentiment among investors, which may influence stock prices in related sectors.

Date: 20-03-2025

AI Rating: 6

Live Cattle Futures Performance: Live cattle futures are rallying by $1.60 to $2 on Wednesday, reflecting strong investor activity. The cash trade for last week was solid, with prices at $203 in the South and $205-206 in the North. However, recent auction results showed no sales on the 1,258 head offered this week, suggesting a mixed sentiment in immediate trading.

Feeder Cattle Futures: The feeder cattle futures also show gains of $2.05 to $2.25 at midday, with the CME Feeder Cattle Index increasing by $0.84. The average price was reported at $284.11, indicating a positive trend in this segment.

Wholesale Boxed Beef Report: The USDA's National Wholesale Boxed Beef report presents a mixed picture. The Choice boxes have risen by $6.02 to $329.34 per cwt, while Select boxes decreased by $1.00 to $308.23. This widening margin in boxed beef prices may have implications for profit margins in the beef sector.

Cattle Slaughter Estimates: The estimate for federally inspected cattle slaughter was 123,000 head for Tuesday, totaling 237,000 head so far this week, down slightly from the previous week and prior year. Weather conditions such as blizzards may further impact slaughter rates, bringing uncertainty to supply chains.

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