Live cattle futures advanced $1.35 to $1.55 on Friday, with feeder cattle futures also posting gains of 45 cents to $1.65, despite the CME Feeder Cattle Index declining. This upward trend in futures occurred amid mixed USDA Wholesale Boxed Beef prices, which saw Choice cuts decrease while Select cuts rose, narrowing the Choice/Select spread to $15.23. Federally inspected cattle slaughter for the week totaled 456,000 head, exceeding the prior week but remaining significantly below last year's levels, suggesting potential supply constraints influencing market sentiment.
Live cattle futures demonstrated a notable upward trend on Friday, gaining $1.35 to $1.55, with feeder cattle futures also advancing between 45 cents and $1.65 across contracts. This positive momentum in futures was supported by robust cash market sales, with Northern sales reported at $230-230.50 and Southern sales reaching $232. Despite the strong futures performance, underlying spot market signals were mixed; the CME Feeder Cattle Index declined by $1.66 to $347.82, indicating some weakness in the cash feeder market. Wholesale Boxed Beef prices also showed divergence, with Choice cuts down 54 cents to $377.43 while Select cuts rose $1.44 to $362.20, resulting in a narrowed Choice/Select spread of $15.23. Supply-side data suggests potential support for higher prices, as federally inspected cattle slaughter for the week totaled 456,000 head, which is 39,701 head below the same week last year. This year-over-year deficit in slaughter volume indicates tighter supply conditions, likely contributing to the bullish sentiment observed in the futures market.
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moderately positive
Sentiment Score
0.40
Ticker Sentiment
