Live Cattle and Feeder Futures Slip as Boxed Beef Prices Split
Live cattle futures moved lower on Monday, dropping 30 to 62 cents across active contracts during midday trading. Feeder cattle futures also recorded declines, falling between 87 cents and $1.57 per hundredweight. Northern cash market activity late last week established trades at $222 to $223 live and $345 dressed, while the feeder cattle index stood at $337.07 on October 8.
Wholesale beef values showed mixed movement during morning market reports. Choice boxed beef dropped $1.93 to $375.28, whereas Select boxes gained 47 cents to $354.77, creating a Choice/Select spread of $20.51. In addition, estimated federally inspected cattle slaughter totaled 531,000 head last week, rising by 17,000 head from the previous week but remaining 20,329 head lower than the same period a year ago.
Positioning reports showed speculative fund managers slightly trimmed their net long live cattle positions by 384 contracts to 50,920 contracts. Meanwhile, traders will continue monitoring physical cash trading activity and regional auctions, including early demand at Oklahoma City's 5,800-head feeder cattle sale.
Key points
- Live cattle futures traded 30 to 62 cents lower at midday, with feeder cattle contracts dropping up to $1.57.
- Choice boxed beef values slipped $1.93 to $375.28, while Select boxed beef gained 47 cents to $354.77.
- Weekly cattle slaughter reached an estimated 531,000 head, down 20,329 head compared to the same week last year.
- Speculative managers trimmed live cattle net long positions to 50,920 contracts while adding to feeder longs.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
Why are live cattle futures lower?
Live cattle futures declined alongside feeder contracts as Choice boxed beef prices dropped and market participants weighed lower year-over-year slaughter totals.
What were wholesale boxed beef prices on Monday?
Choice boxed beef fell $1.93 to $375.28, while Select boxes rose 47 cents to $354.77, leaving the Choice/Select spread at $20.51.
How many cattle were slaughtered last week?
Weekly federally inspected cattle slaughter was estimated at 531,000 head, up 17,000 from the prior week but down 20,329 from a year earlier.