Key Moments
- Front-month live cattle futures advanced by 35 to 50 cents on Friday, while feeder cattle contracts surged $2.95 to $3.65 on the day.
- The CME Feeder Cattle Index climbed $4.43 on August 6 to $357.36, with cash trade last week reported at $235 live and $370 dressed in the North.
- USDA estimated federally inspected cattle slaughter at 509,000 head for last week, 3,000 head below the prior week and 27,811 head under the same week a year ago.
Futures Market Overview
Live cattle futures ended Friday’s session higher in the nearby contracts, with gains ranging from 35 to 50 cents, even as the August contract slipped a nickel over the course of last week. Cash cattle trade expanded during the week, with values reported at $235 on a live basis and $370 on a dressed basis in the North across the country.
Feeder cattle futures showed stronger upside action on Friday, closing $2.95 to $3.65 higher for the day. The August feeder cattle contract gained $3.625 over the week. The CME Feeder Cattle Index moved $4.43 higher on August 6, reaching $357.36.
Positioning and Commitments of Traders
The Friday Commitment of Traders report indicated that managed money participants reduced exposure in live cattle futures and options. As of Tuesday, they had trimmed 456 contracts from their net long position, bringing it to 66,067 contracts.
In contrast, speculative funds increased their footprint in feeder cattle futures and options. As of 8/4, speculators added 1,182 contracts to their net long stance, raising it to 8,605 contracts.
Wholesale Beef and Slaughter Data
Wholesale Boxed Beef values strengthened in Friday afternoon’s report. Choice boxed beef prices increased by 50 cents to $364.36, while Select boxes advanced $2.59 to $352.37. The Choice-Select price spread narrowed to $11.99.
USDA’s estimate for federally inspected cattle slaughter for last week was 509,000 head. This total was 3,000 head below the prior week and 27,811 head under the corresponding week a year earlier.
Friday Settlement Prices
Key live cattle and feeder cattle futures contracts concluded Friday’s session as follows:
| Contract | Settlement Price | Change on Day |
|---|---|---|
| Aug 26 Live Cattle | $231.700 | up $0.475 |
| Oct 26 Live Cattle | $225.275 | up $0.350 |
| Dec 26 Live Cattle | $224.150 | down $0.225 |
| Aug 26 Feeder Cattle | $351.650 | up $3.600 |
| Sep 26 Feeder Cattle | $345.225 | up $3.650 |
| Oct 26 Feeder Cattle | $334.925 | up $2.975 |
Disclosure
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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