Bovine Struggles Persist on Wednesday
Live cattle and feeder cattle futures are moving in contrasting directions today, reflecting the dynamic commodity market.
Live cattle futures are slipping lower, with a decrease of around $1.025 for June contracts, $1.050 for August, and $0.900 for October as of June 25. Cash trade has been slow this week, with no sales recorded during the Wednesday morning Fed Cattle Exchange auction when 1,546 head were offered, bids ranging from $215 to $220.
Meanwhile, feeder cattle futures areCopy trading less bullish, with contracts falling by $2.150 for August, $2.350 for September, and $2.350 for October.
The CME Feeder Cattle Index was down 16 cents on May 26, with an average price of $296.09. USDA's National Wholesale Boxed Beef report revealed increased spreads, with the Chc/Sel spread at $13.82, up from previous levels. Choice boxes saw a rise of $2.92 and were quoted at $364.77, while Select experienced a slight gain of 12 cents, closing at $350.95/cwt.
U.S. Federally inspected cattle slaughter for Tuesday was 114,000 head, representing a decrease of 10,121 heads compared to the same holiday week last year.
Market sentiment suggests that live cattle futures are boosted by strong consumer demand in the peak grilling season, robust cash markets, and rising wholesale beef prices. On the other hand, feeder cattle futures appear to face cautious fund activity and anticipation of weak cash feeder prices, leading to mixed or slightly downward trends.
Live cattle futures, despite showing strength due to strong consumer demand, robust cash markets, and rising wholesale beef prices, are currently slipping lower in the financial market, with decreases in June, August, and October contracts. In contrast, feeder cattle futures seem to be facing cautious fund activity and anticipation of weak cash feeder prices, resulting in contracts falling in the finance sector.
