Live cattle futures experienced notable gains on Monday, rising between $1 and $1.40, while feeder cattle futures also saw increases of up to $1.275. Preliminary open interest rose by 3,501 contracts, indicating growing market activity. Cash trade remains stagnant early this week, but last week’s prices showed Southern trades at $212-213 and Northern trades reaching $217-218.
The USDA has reached an agreement with Mexico to mitigate the spread of the new world screwworm, which had threatened to limit feeder cattle imports. Additionally, the National Wholesale Boxed Beef report indicated a rise in boxed beef prices, with Choice boxes climbing $6.29 to $342.77/cwt. This uptick in boxed beef prices, combined with a slight decrease in federally inspected cattle slaughter, suggests a tightening supply that could further support cattle prices.
Market professionals should monitor these developments closely, as the combination of rising futures and the USDA’s import agreement may signal a bullish trend in the cattle market moving forward.
Source: nasdaq.com