Live cattle futures are experiencing mixed movements, with prices fluctuating between a 22-cent gain and an 85-cent loss. Cash trade this week has ranged from $260 to $265, while the recent Fed Cattle Exchange auction saw sales at $259 for 104 head out of 652 offered. Feeder cattle futures are also under pressure, down between $7.72 and $8.60, with expanded trading limits in place.
The market is closely watching the upcoming USDA Cattle on Feed report, which is expected to show a 3.4% increase in April placements year-over-year. This data could influence future price trends, especially given the mixed wholesale boxed beef prices reported recently. The CME Feeder Cattle Index has also seen a decline, indicating a challenging environment for feeder cattle prices.
As traders prepare for the holiday weekend, the implications of the upcoming USDA report and ongoing health concerns, such as the New World Screwworm cases near the U.S. border, will be critical in shaping market sentiment in the cattle sector.
Source: nasdaq.com