Cattle prices showed mixed results on Thursday

Cattle Market Update: Mixed Results on Thursday

Live cattle futures ended Thursday with losses ranging from 12 to 72 cents, though some contracts for later delivery managed to close higher. In the cash market, limited trading activity saw a few cattle sold at $232 this week. The Fed Cattle Exchange online auction on Wednesday reported no transactions for the 1,228 head offered, with bids coming in at $230 to $230.50. Feeder cattle futures also faced declines, with the nearby January contract dropping 50 cents and most other contracts under pressure. The CME Feeder Cattle Index slipped by $2.18, settling at $365.23 as of January 21.

Looking ahead, the monthly Cattle on Feed report is scheduled for release Friday afternoon. Market participants anticipate December placements to be 6.5% lower year-over-year, while marketing is expected to rise by 1.5%. The on-feed inventory as of January 1 is projected to be down 3.2% from the previous year.

The USDA's Thursday afternoon Boxed Beef report showed mixed results, with the Choice-Select spread widening to $5.72. Choice boxed beef increased by $1.34 to $365.89, while Select fell by 72 cents to $361.73. The USDA estimated Thursday’s federally inspected cattle slaughter at 114,000 head, bringing the weekly total to 447,000. This is 32,000 head fewer than the previous week and 33,988 below the same period last year.

Futures Closing Prices

• February 26 Live Cattle closed at $232.375, down $0.725
• April 26 Live Cattle closed at $234.825, down $0.125
• June 26 Live Cattle closed at $230.900, up $0.025
• January 26 Feeder Cattle closed at $363.725, up $0.500
• March 26 Feeder Cattle closed at $359.275, down $0.100
• April 26 Feeder Cattle closed at $357.950, down $0.175