Cattle Sink into the Extended Weekend

Cattle Market Experiences Sharp Decline Ahead of Holiday

On Friday, live cattle futures ended the session with significant losses, dropping between $3.90 and $4.50 per contract. Over the course of the week, the February contract slipped by $1.57. In the cash market, prices in the South hovered around $233, while trades in the North ranged from $232 to $235. Feeder cattle also saw a notable pullback, erasing much of the week's earlier gains as contracts fell by $6.50 to $8.10 on Friday. Despite this, January feeder cattle still managed a weekly increase of $1.20. The CME Feeder Cattle Index rose by 73 cents to reach $370.15 as of January 15. Please note, markets will be closed on Monday in observance of Martin Luther King Jr. Day.

New World Screwworm Cases Reported in Mexico

According to the USDA’s APHIS website, several new instances of New World Screwworm were identified in Mexico last week. Notably, six new cases emerged in Tamaulipas, a state bordering the United States, bringing the total number of active cases there to eight.

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Position Changes and Beef Market Developments

Data from the CFTC reveals that managed money increased their net long positions in live cattle futures and options by 6,555 contracts, reaching a total of 101,316 as of January 13. In contrast, speculators reduced their net long positions in feeder cattle futures and options by 530 contracts, bringing the total to 16,308.

The USDA’s Friday afternoon report indicated higher wholesale boxed beef prices, with the Choice-Select spread widening to $2.19. Choice boxed beef climbed $1.61 to $362.39, while Select boxes rose by 48 cents to $360.30. This week, federally inspected cattle slaughter was estimated at 562,000 head, up 9,000 from the previous week but 39,259 fewer than the same period last year.

Recent Cattle Futures Closings

• Feb 26 Live Cattle: Closed at $232.150, down $3.900
• Apr 26 Live Cattle: Closed at $233.975, down $4.450
• Jun 26 Live Cattle: Closed at $229.600, down $4.300
• Jan 26 Feeder Cattle: Closed at $361.925, down $6.500
• Mar 26 Feeder Cattle: Closed at $356.450, down $8.100
• Apr 26 Feeder Cattle: Closed at $354.900, down $8.025