Cattle Rallies into the Weekend Despite Cash Weakness
Live cattle futures rallied back on Friday, closing with $3.05 to $4.10 gains heading into the weekend. Cash trade this week saw sales at $230-233 in the North and $223-225 in the South. Friday’s Central Stockyards Fed Cattle Exchange auction showed sales of $224-225, with BidTheGrid™ sales of $225 and $230. Feeder cattle futures put it in road gear on Friday, closing up $4.30 to $4.60. August saw a $5.45 gain this week. The CME Feeder Cattle Index was up 58 cents to $311.97.
A worker’s union at a Tyson plant (5,500 head capacity) in Texas authorized a strike on Friday, putting the plant offline.
The Friday afternoon Commitment of Traders report showed spec traders in live cattle futures and options trimming back 2,357 contracts from their large net long position to 132,893 contracts by Tuesday. As of June 24th, feeder cattle futures were net long 35,506 contracts, a reduction of 352 on the week.
USDA Wholesale Boxed Beef prices were higher on Friday afternoon, with the Chc/Sel spread narrowing to $13.56. Choice boxes were up $1.46 to $396.51, while Select was quoted $3.21 higher at $382.95/cwt. USDA’s Federally inspected cattle slaughter this week was estimated at 560,000 head. That is even with the week prior but 50,420 head below the same week last year.
Jun 25 Live Cattle closed at $224.750, up $3.050,
Aug 25 Live Cattle closed at $213.300, up $4.100,
Oct 25 Live Cattle closed at $209.825, up $3.475,
Aug 25 Feeder Cattle closed at $307.900, up $4.600,
Sep 25 Feeder Cattle closed at $307.900, up $4.525,
Oct 25 Feeder Cattle closed at $305.725, up $4.300,
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.