Live cattle futures saw notable gains on Thursday, with increases ranging from 77 cents to $1.27 at the close. Cash trade in the South was steady, with prices up $1 from last week at $246. Although bids at the Central Stockyards Fed Cattle Exchange reached $244-244.50 for 970 head offered, no sales were recorded. Meanwhile, feeder cattle futures also strengthened, with gains of $1.85 to $2.60.
This uptick in cattle futures is significant for market participants as it reflects a tightening supply amid lower slaughter rates, with USDA reporting a weekly total of 425,000 head, down 4,000 from the previous week. Additionally, the USDA’s Export Sales report indicated robust demand, particularly from South Korea and Japan, which could support prices further. Wholesale boxed beef prices showed mixed results, with Choice boxes up $1.43 while Select boxes fell.
For traders and analysts, the current trends suggest a potentially bullish outlook for cattle futures in the near term, driven by demand dynamics and supply constraints.
Source: nasdaq.com