New Month for Cattle Futures
Cattle ended the last trade day of the week with another triple digit pullback. December’s $2.50 loss on Friday left the contract $3.42 lower for the week but still $3.12 higher for the month after new all-time highs were set last week. USDA had Friday sales from $181 to $185, noting the bulk in the South was $183 for the week and the North was mostly $184 ($290 dressed). Feeder cattle futures settled Friday’s session $1.85 to $2.77 lower. October contracts finished the week at a net $6.67 loss and flipped red by $3.55 for the month’s move. The CME Feeder Cattle Index was $252.20 on 9/27.
Commitment of Traders data showed live cattle spec traders with a 101,860 contract net long for 9/26. That was 1,141 contracts weaker for the week. The funds were 3.7k contracts less net long in feeders, to 12,563 contracts.
Wholesale Boxed Beef prices were weaker on Friday afternoon with a 73c drop in Choice and a $1.40 drop in Select. The Chc/Sel spread was $24.74. The week’s federally inspected cattle slaughter was estimated at 612,000 head through Saturday. That is 13k head lighter wk/wk and is down 55k head from the same week last year. USDA has the YTD pace down 4.4% yr/yr.
Oct 23 Cattle closed at $184.200, down $2.300,
Dec 23 Cattle closed at $187.925, down $2.500,
Feb 24 Cattle closed at $192.500, down $2.125,
Oct 23 Feeder Cattle closed at $252.475, down $2.250
Nov 23 Feeder Cattle closed at $254.900, down $2.775
On the date of publication, Alan Brugler 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.
