Live cattle futures experienced a modest rebound from earlier lows but ultimately closed down between 22 to 87 cents on Friday, with April futures down $1.82 for the week. Cash trade saw some activity, with sales averaging $248 per head, notably stronger in the South compared to a $1 decline in the North. The CME Feeder Cattle Index also fell, closing at $377.67, reflecting broader weakness in feeder cattle futures, which dropped $1.57 to $2.85.
The USDA’s latest Cattle on Feed report revealed a 7.67% year-over-year decline in March placements, aligning closely with market expectations. Meanwhile, wholesale boxed beef prices fell, with Choice boxes down 51 cents to $381.06. The report indicated a slight increase in slaughter numbers compared to last week but significantly lower than the same period last year, suggesting tightening supply dynamics.
Market professionals should note the ongoing pressure on cattle prices amid fluctuating demand and supply metrics, particularly as the grilling season approaches, potentially impacting future pricing strategies.
Source: nasdaq.com