Cattle Rally Continues on Wednesday

Live cattle futures continued to rally on Wednesday, with gains of $1.35 to $1.85 at the close. Cash trade has yet to get kicked off this week. Last week was strong, at $203 in the South, with Northern action at $205-206. This morning’s Fed Cattle Exchange online auction showed no sales on the 1,258 head offered, with a couple bids at $200-201. Feeder cattle futures posted Wednesday gains of $1.85 at the close. The CME Feeder Cattle Index was back up $0.54 on March 18, with the average price at $284.65.

Ahead of the Friday Cattle on Feed report, analysts estimate to see February placements down 14% from last year on average, with Feb marketings down 8.1%. Last year included 1 more day. March on feed data is expected to total 98.3% compared to the level last year. 

USDA’s National Wholesale Boxed Beef report was mixed on Wednesday afternoon, as the Chc/Sel widened to $20.93. Choice boxes were up $6.29 at $329.61/cwt, with Select 55 cents lower at $308.68. Wednesday’s Federally inspected cattle slaughter was estimated at 96,000 head by USDA, hampered by the blizzard in parts of NE and IA, with the week to date total at 333,000 head. That is 29,000 head below the previous week, and down 21,900 from the same week last year.

Apr 25 Live Cattle  closed at $206.825, up $1.450,

Jun 25 Live Cattle  closed at $202.850, up $1.850,

Aug 25 Live Cattle  closed at $200.075, up $1.375,

Mar 25 Feeder Cattle  closed at $286.825, up $1.850,

Apr 25 Feeder Cattle  closed at $286.725, up $2.175,

May 25 Feeder Cattle  closed at $287.500, up $2.250,

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.