Live cattle futures experienced notable gains on Thursday, with prices rising between 22 cents and $1.05. Cash trade has stabilized around $246, as evidenced by the Fed Cattle Exchange, which reported sales of 334 head at $246-247. Meanwhile, feeder cattle futures also saw increases, although the front month April contract fell by 17 cents. The CME Feeder Cattle Index decreased by $3.44 to $370.00.
The uptick in live cattle prices is significant as it reflects ongoing demand in the beef market, with USDA’s Export Sales report indicating a robust export volume of 15,131 MT for the week ending April 16, primarily driven by South Korea and Japan. However, lower wholesale boxed beef prices and a decline in federally inspected cattle slaughter—down 4,000 head from last week—could signal potential supply constraints or shifting market dynamics.
Market professionals should monitor the evolving situation with the New World Screwworm cases in Mexico, as this could impact cattle health and supply, further influencing price movements in the live cattle market.
Source: nasdaq.com