Live cattle futures experienced a notable decline on Thursday, dropping between $3.35 and $5.95 as cash trade remained limited, with a few sales reported at $260 in Kansas and $265 in the North. The Fed Cattle Exchange auction saw no sales from the 652 head offered, indicating weak demand. Feeder cattle futures also fell, with the May contract down $1.60, while the rest of the board faced losses of up to $9.25. The CME Feeder Cattle Index decreased by $1.72 to $370.72.
This downturn comes amid mixed signals in the market, with USDA’s upcoming Cattle on Feed report expected to show a 3.4% increase in April placements year-over-year, but a 9.3% decline in marketings. Additionally, the ongoing issues with the New World Screwworm in Mexico could further complicate supply dynamics, especially with cases reported near the U.S. border.
Market participants should closely monitor the USDA data release on Friday, as it could provide critical insights into supply trends and influence future pricing in the cattle markets.
Source: nasdaq.com