Cattle Collapse into the Weekend
Live cattle futures fell on the Friday session, with contracts down $1.67 to $3.55 at the close. April ended the week down $1.30. Cash sales have been reported at $197 in the south and light $198 trade in the North, both down $2 from last week. Feeder cattle headed back lower on Friday, with losses of $1.47 to $2.85, as March was up $7.02 since last Friday. The CME Feeder Cattle Index was back up $1.42 on February 27, with the average price at $281.06.
Weekly CFTC data showed the managed money spec funds trimming back another 7,158 contracts from their net long in the week of 2/25, to a net long at 121,311 contracts. In feeder cattle futures and options, spec traders cut back their record net long by 1,925 contracts to 28,144 contracts as of Tuesday.
Friday afternoon’s National Wholesale Boxed Beef report from USDA showed prices mixed, with the Chc/Sel spread back up to $9.78. Choice boxes were up 65 cents at $311.83/cwt, with Select 8 cents lower to $302.05. This week’s Federally inspected cattle slaughter was estimated at 566,000 head by the USDA. That is 3,000 head below the previous week but still down 28,236 head from the same week last year.
Feb 25 Live Cattle closed at $197.725, down $1.675,
Apr 25 Live Cattle closed at $192.650, down $3.475,
Jun 25 Live Cattle closed at $188.775, down $3.550,
Mar 25 Feeder Cattle closed at $274.975, down $1.475,
Apr 25 Feeder Cattle closed at $273.000, down $2.550,
May 25 Feeder Cattle closed at $271.125, down $2.850,
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.