Live cattle futures were buying into the Cattle on Feed report on Friday, up 15 to 35 cents in the front months at the close. Feb closed the week up just 7 cents. Cash trade was slow this week, with sales around $199 in the South and North trade at $199-200, both down $3-4 on the week. Feeder cattle saw gains of 85 cents to $1.17 at the close. March was up $1.60 on the week. The CME Feeder Cattle Index was 2 cents higher on February 20 at $278.84.
Friday’s Cattle on Feed report showed January placements up 1.73% from last year at 1.822 million head, vs. estimates of a 2.2% increase. January marketings were 1.41% higher at 1.869 million head compared to the trades +2.1% estimate. February 1 on feed inventory was down 0.69% at 11.716 million head, with analysts’ expecting a 0.8% reduction.
CFTC data showed specs cutting back another 7,240 contracts from their net long in the week ending on Tuesday at 128,469 contracts. In feeder cattle, managed money was still at a record net long of 30,069 contracts, a 1,702 contract increase on the week.
Beef export sales were tallied at 21,481 MT during the week of February 13, a 64% increase from the week prior. Japan purchased a total of 9,800 MT, with 3,400 MT sold to South Korea. Export Shipments were 14,193 MT, a 4-week low. The largest destination was Japan at 4,100 MT, with 3,800 MT to South Korea.
The Friday afternoon National Wholesale Boxed Beef report was lower, as the Chc/Sel spread was tightening at $8.21. Choice boxes were down another $1.86 at $310.77/cwt, with Select down 62 cents to $302.56. This week’s Federally inspected cattle slaughter was estimated at 563,000 head by the USDA. That is up 2,000 head from the previous week and 27,486 head below the same week last year.
Feb 25 Live Cattle closed at $197.825, up $0.200,
Apr 25 Live Cattle closed at $193.950, up $0.150,
Jun 25 Live Cattle closed at $190.325, up $0.350,
Mar 25 Feeder Cattle closed at $267.950, up $1.125,
Apr 25 Feeder Cattle closed at $267.550, up $1.175,
May 25 Feeder Cattle closed at $265.925, up $0.850,
On the date of publication,
Austin Schroeder
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.
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