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Commodity futures

Cattle Futures Close Early Amid Pre-Easter Holiday Session

Strategic Insights

— 1 min read

The Chicago Mercantile Exchange's live cattle futures session closed early on April 8, 2004, at 1200 CT (1700 GMT). The session was abbreviated due to the pre-Easter holiday. Market experts had anticipated a 10 to 20 point higher open, with April as the overall favorite following higher prices for beef and cash live cattle this week. Beef wholesalers were particularly active, as choice boxed beef prices rose by $11.81 in just three days.

Key Takeaways:

  • The April live cattle futures contract was the overall favorite, anticipating higher prices for beef and cash live cattle.
  • Beef wholesalers were active in the market, with choice boxed beef prices increasing by $11.81 in only three days.
  • Cash sources reported that futures prices discounted to current cash quotes had kept most beef users from booking product in advance.
  • Cattle owners were reported to be keeping up with their marketings, with packers picking up cattle as soon as they were purchased.
  • Bearish futures traders believed that current cash values were as good as they would get for the remainder of the year, citing caution over US beef exports to Asia and the potential reintroduction of Canadian live cattle.
  • The Cattlemen's Beef Promotion and Research Board planned to step up domestic promotion efforts this summer, following the loss of export markets for US beef following the discovery of mad-cow disease on December 23.
  • Boxed beef movement on Wednesday was reported at 259 loads of fabricated cuts.
  • The USDA reported higher boxed-beef prices on Wednesday, with light choice at $152.04, up $3.96.
  • The choice/select spread for Wednesday was $15.78.
  • The operating margin index for cattle packers on Wednesday was plus $58.70 per head.
  • The CME feeder index was $0.02 lower at $92.08.
  • The USDA estimated cattle slaughter on Wednesday at 113,000 head, compared with 108,000 last week and 133,000 last year.

Statistics:

  • Choice boxed beef prices increased by $11.81 in only three days.
  • Light choice prices were reported at $152.04, up $3.96.
  • The choice/select spread for Wednesday was $15.78.
  • The operating margin index for cattle packers on Wednesday was plus $58.70 per head.
  • The CME feeder index was $0.02 lower at $92.08.
  • The USDA estimated cattle slaughter on Wednesday at 113,000 head.

Sources:

  • OsterDowJones
  • COMTEX
  • USDA (United States Department of Agriculture)
  • HedgersEdge.com

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