Live cattle futures are experiencing notable declines, with losses ranging from $1.45 to $1.65 on Friday, amid a backdrop of increased cash trade, with sales reported at $248. The Fed Cattle Exchange auction saw no sales for 1,222 head, with bids falling short at $246-247. Meanwhile, feeder cattle futures are down significantly, with midday contracts dropping between $3.65 and $5.50. The CME Feeder Cattle Index rose slightly to $379.09, but concerns remain regarding the impact of the new world screwworm cases in Mexico, which could affect cattle health and supply.
This downturn in cattle futures is compounded by lower wholesale boxed beef prices, with Choice boxes down 35 cents to $381.22 and Select boxes down $1.12. The USDA’s upcoming Cattle on Feed report is expected to reveal a 7.1% year-over-year decline in March placements, which could further influence market sentiment and pricing dynamics.
Market professionals should closely monitor the USDA report and the ongoing health issues affecting cattle, as these factors could lead to increased volatility in cattle futures and related sectors.
Source: nasdaq.com