USDA Increased Beef Production Outlook
The cattle market traded higher on Thursday. The fats were up by 0.4% to 0.6% with triple digit gains in the April and June contracts. USDA confirmed another solid day of cash trade on Thursday. Southern deals were mostly steady near $182-183, while Northern trades were $1-2 higher near $185. There were no deliveries issued against Oct fats through 10/11. Feeder cattle futures finished Thursday with triple digit gains of as much as 0.7%. The 10/11 CME Feeder Cattle Index increased 51 cents to $250.30.
USDA’s monthly WASDE report had 2023 beef production at 26.976b lbs, a 35m lb increase from the Sep figure. That came via a 25m cut to Q3 and a 60m increase for Q4. The 2024 outlook was raised 110m lbs to 25.275 billion – 50 of which was Q1.
USDA’s Wholesale Boxed Beef report had Choice boxes up by 91 cents to $301.19, while Select was 28 cents lower to $275.02. USDA estimates the week’s FI cattle slaughter at 499k head through Thursday, matching last week but 11k below the same week last year.
Oct 23 Cattle closed at $185.400, up $0.900,
Dec 23 Cattle closed at $187.800, up $0.825,
Feb 24 Cattle closed at $192.000, up $0.750,
Oct 23 Feeder Cattle closed at $252.025, up $1.850
Nov 23 Feeder Cattle closed at $253.575, up $1.575
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.
