Cattle Look to New Week after Friday Strength

Live cattle futures were in rally mode on Friday, with gains of $3 to $4. April was up $7.625 on the week. Preliminary open interest showed rolling out of the April contract, down 6,477 contracts on Friday as the Goldman roll starts with June up 4,625 contracts. Cash trade came in last week at $196-198 in the south. Northern trade was slower, with sales at $200-202 on Friday. Friday morning’s online Fed Cattle Exchange auction from Central Stockyards, a sale on one of the two lots listed at $203 using their BidTheGrid™ method. Feeder cattle were up $2.95 to $4.50 across most contracts at the close with March up $2 last week. The CME Feeder Cattle Index was down another $2.32 on March 6, with the average price at $273.77. 

Speculators in live cattle futures and options were trimming back their net long as of March 4 by 10,843 contracts to 110,468 contracts. In feeder cattle, managed money was adding 736 contracts to their net long at 28,880 contracts by last Tuesday.

Friday afternoon’s National Wholesale Boxed Beef prices were higher, with the Chc/Sel spread narrowing to $9.10. Choice boxes were back up $1.78 at $314.90/cwt, with Select $2.29 higher at $305.80. Last week’s Federally inspected cattle slaughter was estimated at 578,000 head by the USDA. That is 12,000 head above the previous week, but still down 5,995 head from the same week last year.

Apr 25 Live Cattle  closed at $200.275, up $4.000,

Jun 25 Live Cattle  closed at $196.475, up $3.850,

Aug 25 Live Cattle  closed at $194.350, up $3.375,

Mar 25 Feeder Cattle  closed at $276.975, up $2.950,

Apr 25 Feeder Cattle  closed at $278.150, up $3.725,

May 25 Feeder Cattle  closed at $278.200, up $4.350,