Live cattle futures presented a mixed trading picture on Thursday, with contracts fluctuating between losses of 50 cents and gains of 22 cents. The expiring October contracts saw a notable shift, with six deliveries from Wednesday being retendered on Thursday. This activity contributed to a dynamic session for live cattle traders.
Cash Market Activity and Feeder Cattle Trends
The cash cattle market saw early activity this week, with prices ranging from $250-$252 across the country and advancing to $256-$257 by Wednesday. On Thursday morning, the Central Stockyards online Fed Cattle Exchange auction listed 2,720 head for sale, but reported no sales, with bids reported in the $183-$185 range. In broader beef market activity, Southern sales were noted at $188, while Northern sales reached $296.
Feeder cattle futures, in contrast to some live cattle contracts, closed Thursday with gains. Near-term contracts rose between 25 and 62 cents, while deferred contracts experienced declines of 22 to 60 cents. The CME Feeder Cattle Index continued its upward trend, increasing by 78 cents to $250.25 as of October 16.
Wholesale Beef Prices and Slaughter Data
The USDA’s wholesale Boxed Beef report for Thursday afternoon indicated higher prices. Choice boxes saw a modest increase of 13 cents, reaching $319.26 per hundredweight. Select boxes experienced a more significant rise of $1.15, closing at $293.52. This movement resulted in a narrowing of the Choice/Select spread to $25.74.
Regarding supply, USDA estimated Thursday’s federally inspected cattle slaughter at 118,000 head. This brings the weekly total to 488,000 head, which is 14,000 head above the previous week’s total. However, this figure remains 13,670 head below the same week last year, suggesting a year-over-year decrease in slaughter volume.
Futures Contract Performance
Specific contract performances on Thursday included:
- October 24 Live Cattle closed at $186.625, down $0.425.
- December 24 Live Cattle closed at $186.175, down $0.425.
- February 25 Live Cattle closed at $186.975, unchanged.
- October 24 Feeder Cattle closed at $246.725, up $0.625.
- November 24 Feeder Cattle closed at $245.750, up $0.250.
- January 25 Feeder Cattle closed at $243.125, down $0.225.
The mixed performance in live cattle futures, coupled with gains in feeder cattle and rising wholesale beef prices, paints a complex picture for the cattle market as the week concludes. The retendering of October contracts and the wide bid-ask in the Fed Cattle Exchange auction highlight ongoing dynamics influencing price discovery.
