Cattle Futures Slide Midday Despite Gains in Wholesale Boxed Beef
Live Cattle Futures (CME:LE1!) and feeder cattle futures moved lower during Tuesday midday trading, with near-term contracts across both markets posting modest losses. October live cattle fell 25 cents to $224.50, while December contracts dropped 40 cents to $226.20. Feeder cattle futures experienced similar pressure, with October contracts declining $1.20 to $342.275.
The weakness in futures comes despite strength in wholesale boxed beef prices on Tuesday morning. Choice boxes rose 98 cents to $376.54, and Select boxes gained $1.55 to $354.77. However, physical cash trade remained sluggish following last week's deals at $222 to $223 live in the North and near $226 in the South. Meanwhile, Monday feeder auctions showed solid physical demand, with calves selling $10 to $20 higher at Oklahoma City.
Market participants will watch whether physical cash trading gains momentum later in the week to provide support for futures. Traders are also keeping an eye on slaughter volume, with Monday's estimated output of 106,000 head rising from the previous week but remaining below year-ago levels.
Key points
- October live cattle futures fell 25 cents to $224.50, while December contracts decreased 40 cents to $226.20 during Tuesday midday trading.
- October feeder cattle futures dropped $1.20 to $342.275, even as the CME Feeder Cattle Index gained $1.55 to $338.62 on October 9.
- Wholesale Choice boxed beef prices increased 98 cents to $376.54 on Tuesday morning, while Select boxes rose $1.55 to $354.77.
- Estimated federal cattle slaughter reached 106,000 head on Monday, up 4,000 head from the prior week but below last year's level.
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How we writeDisclaimerQuestions and answers
Why are cattle futures declining on Tuesday?
Live cattle futures dropped as quiet cash trade and broader market pressure offset morning gains in wholesale boxed beef prices.
What were wholesale boxed beef prices on Tuesday morning?
Wholesale Choice cutout prices rose 98 cents to $376.54, while Select boxes increased $1.55 to $354.77.
How did cattle slaughter numbers compare to last year?
Monday estimated slaughter reached 106,000 head, up 4,000 head from the prior week but 2,419 head below the same week last year.