Live cattle futures showed mixed results on Tuesday, with June contracts slipping by a nickel while other months gained between 7 to 65 cents. Cash trade from last week settled at $235-236 in the North and $235 in the South, but this week’s trading has yet to commence. In contrast, feeder cattle futures saw more robust gains, climbing $1.85 to $2.35, supported by a 26-cent rise in the CME Feeder Cattle Index to $361.59.
The market’s dynamics are influenced by a slight uptick in wholesale boxed beef prices, with Choice boxes up 78 cents to $399.91 and Select boxes rising 67 cents to $394.50. However, USDA’s slaughter estimates indicate a year-over-year decline, with 212,000 head processed this week, down 31,286 from last year. This discrepancy could signal tighter supply conditions ahead.
Traders should monitor the ongoing cash trade developments and slaughter rates closely, as these factors will likely impact future pricing and market sentiment in the cattle sector.
Source: nasdaq.com