Live cattle futures saw modest gains on Thursday, with prices increasing between 12 to 47 cents. Cash prices in the South hovered around $188, while northern trades reached $198. The Central Stockyards Fed Cattle Exchange reported sales at $191 in Texas, indicating a steady demand. Feeder cattle also experienced upward movement, with contracts rising 45 cents to $1.80, reflecting a tightening market.
The recent drop in beef export sales, which fell to a marketing year low of just 8,348 MT for the week ending July 4, raises concerns about future demand. Coupled with lower USDA wholesale Boxed Beef prices—Choice boxes down $2.40 to $321.65/cwt—these factors suggest potential headwinds for the sector. Additionally, slaughter numbers remain high but are down significantly from last year, indicating a shift in supply dynamics.
Market participants should closely monitor the evolving demand for beef and slaughter rates, as these metrics could influence future price trajectories in both live and feeder cattle markets.
Source: nasdaq.com