Live cattle futures advanced $0.75 to $1.50 on Wednesday, while feeder cattle futures surged $4 to $4.60, indicating strong upward momentum in the livestock market. This rally occurred amidst slow cash trade and a rising CME Feeder Cattle Index, with federally inspected cattle slaughter significantly reduced by 13,000 head week-over-week and 24,512 head year-over-year, suggesting tightening supply. Wholesale boxed beef prices were mixed, with Choice up slightly and Select down, widening the Choice/Select spread to $20.92.
Live cattle futures were 75 cents to $1.50 higher across most contracts on Wednesday. There were no deliveries again for October live cattle on Wednesday. Cash trade has yet to pick up this week across the country, with a few $230 in IA reported on Tuesday. The Wednesday Fed Cattle Exchange online auction showed no sales on the 1,866 head offered, with bids at $230. Feeder cattle futures were $4 to $4.60 higher at the Wednesday close to lead the charge higher. The CME Feeder Cattle Index was up another $1.27 at $365.51 on October 7. USDA Wholesale Boxed Beef prices were mixed in the Wednesday afternoon report, with the Chc/Sel spread widening to $20.92. Choice boxes were up 19 cents to $366.16, while Select was $3.64 lower to $345.38. USDA federally inspected cattle slaughter for Wednesday was estimated at 118,000 head, with the weekly total at 335,000 head. That was 13,000 head below last week and 24,512 shy of the same week last year. Oct 25 Live Cattle closed at $233.850, up $0.750, Dec 25 Live Cattle closed at $238.875, up $1.150, Feb 26 Live Cattle closed at $242.225, up $1.500, Oct 25 Feeder Cattle closed at $369.500, up $4.000, Nov 25 Feeder Cattle closed at $368.825, up $4.575, Jan 26 Feeder Cattle closed at $363.525, up $4.525, 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. More news from Barchart - Will Cattle Futures Continue to Reach New Highs During the Off-Demand Season? - Beef Prices Are Going Up. What’s Behind the Surge, and How Much Higher Will They Go? - Commodity Market Roundup-August’s Top Performers and Underperformers - The Bullish Cattle Stampede Rumbles On. Here’s What to Watch Next After Record Cattle Highs. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Live cattle futures advanced notably on Wednesday, with most contracts rising $0.75 to $1.50, while feeder cattle futures surged $4 to $4.60, indicating a strong bullish sentiment in the livestock market. This upward momentum was underscored by the CME Feeder Cattle Index, which increased by $1.27 to $365.51 on October 7. Despite slow cash trade, with the Fed Cattle Exchange reporting no sales on 1,866 head offered at $230 bids, the futures market strength is heavily supported by tightening supply dynamics. Federally inspected cattle slaughter for the week totaled 335,000 head, representing a significant reduction of 13,000 head week-over-week and 24,512 head year-over-year. Wholesale boxed beef prices showed a mixed trend, with Choice boxes up marginally by $0.19 to $366.16 and Select boxes down $3.64 to $345.38. This divergence widened the Choice/Select spread to $20.92, suggesting a potential premium for higher-quality cuts amidst the broader market firming.
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