Live cattle futures experienced notable gains at Thursday’s close, with increases ranging from 77 cents to $1.27. The decline in open interest by 2,189 contracts indicates modest short covering. Cash trade reported light activity at $246 in the South, a $1 increase from the previous week, while the Central Stockyards Fed Cattle Exchange auction saw bids of $244-244.50 without any sales on the 970 head offered.
The strength in feeder cattle futures was evident, with gains of $1.85 to $2.60 across various contracts. However, the CME Feeder Cattle Index fell by 45 cents to $364.10. USDA’s Export Sales report highlighted robust beef exports, particularly to South Korea and Japan, although shipments were the lowest in four weeks. Mixed wholesale boxed beef prices reflected volatility, with choice boxes rising while select boxes declined.
Market participants should note the mixed signals in cattle prices and export activity, which could influence trading strategies in the livestock sector moving forward.
Source: nasdaq.com