Live cattle futures saw modest gains on Friday, closing up 15 to 35 cents in the front months, while February futures ended the week slightly higher by 7 cents. Cash trade remained sluggish, with sales reported at $199 in the South and $199-200 in the North, reflecting a $3-4 decline from the previous week. Feeder cattle also experienced positive movement, with March futures rising $1.60 for the week, supported by a record net long position from managed money.
The latest Cattle on Feed report revealed a 1.73% increase in January placements year-over-year, slightly below expectations, while marketings were up 1.41%. The February 1 on-feed inventory decreased by 0.69%, aligning closely with analyst forecasts. Meanwhile, beef export sales surged 64% week-over-week, with Japan being a significant buyer, although export shipments hit a four-week low.
Market professionals should note the tightening of the Chc/Sel spread and the lower National Wholesale Boxed Beef report, which could signal near-term pressure on cattle prices despite recent gains.
Source: nasdaq.com