Live cattle futures closed notably higher on Wednesday, with nearbys gaining $1.70-$1.90, and feeder cattle futures rising $3-$3.25, underpinned by strong cash cattle bids reaching $218-$231 in recent auctions and the CME Feeder Cattle Index advancing to $314.10. While USDA wholesale boxed beef prices were mixed, with Choice down and Select up, narrowing the spread to $14.55, the market strength was further supported by increased federally inspected cattle slaughter, which reached 360,000 head weekly, significantly exceeding prior week and year-ago levels.
The cattle market demonstrated significant strength, with live cattle futures closing up by $1.70 to $1.90 and feeder cattle futures rising sharply by $3.00 to $3.25. This upward momentum in the futures market is substantiated by robust activity in the physical cash market, where bids on the Fed Cattle Exchange reached $218 and direct sales in Nebraska were reported as high as $230-231. Further confirming this trend, the CME Feeder Cattle Index advanced by $1.00 to $314.10. A key indicator to watch is the wholesale boxed beef market, which presented a mixed picture: Choice-grade boxes declined by $0.74 to $394.86, while Select-grade boxes increased by $0.25, narrowing the quality spread to $14.55. Concurrently, federally inspected cattle slaughter rose to 360,000 head for the week, a notable increase of 13,000 head from the previous week and 4,283 head above the same week last year, signaling strong current demand from processors.
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strongly positive
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0.75
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