Live cattle futures are experiencing midday strength, with contracts rising between $0.37 and $1.025, mirroring gains in feeder cattle futures. While cash trade in the South saw a $3 decline to $203, beef export sales for the week of February 6th plummeted by 47.41% to 13,098 MT, despite steady shipments. Concurrently, federally inspected cattle slaughter was significantly down both week-over-week and year-over-year, indicating potential tightening in supply, while boxed beef prices showed mixed movements with the Choice/Select spread narrowing.
The cattle market is presenting a bifurcated picture, with futures pricing in a bullish supply scenario while immediate demand indicators show significant weakness. Live cattle futures saw midday gains ranging from 37 cents to $1.025, with feeder cattle futures posting even stronger advances of $2.25 to $3.70. This optimism is fundamentally supported by a sharp contraction in supply, as federally inspected cattle slaughter for the week is down 21,000 head from the prior week and 25,307 head below the same period last year. However, this supply-driven rally contrasts sharply with deteriorating demand signals. Cash trade has softened, with prices in the South falling $3 to $203 and an online auction failing to clear any of its 595 head offering. Furthermore, export sales for the week ending February 6th plummeted by 47.41% to 13,098 MT, a significant forward-looking indicator of waning international demand. The wholesale market is also mixed, with Choice boxed beef prices declining $1.12 while Select grade rose $1.02, narrowing the Chc/Sel spread to $7.98 and suggesting potential price sensitivity among buyers.
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moderately positive
Sentiment Score
0.45
Ticker Sentiment
