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Commodity futures

Feeder Futures Eye $100.00 Mark Amidst Increasing Demand

Strategic Insights

— 1 min read

Chicago Mercantile Exchange live cattle futures have been called slightly higher, with bullish traders predicting cash live cattle values to remain steady this week. The rise in demand is driven by heavy boxed beef movements and positive packer profit margins, causing beef packers to compete for slaughter-ready live cattle supplies. Meanwhile, feeder cattle futures are nearing round-numbered chart resistance at $100.00, pending favorable corn prices.

Key Takeaways:

  • CME live cattle futures are predicted to rise slightly, with cash live cattle values expected to remain steady this week.
  • Heavy boxed beef movements and positive packer profit margins are driving demand for live cattle.
  • Boxed beef movement on Friday reached 235 loads of fabricated cuts, marking an increase in demand.
  • The choice/select spread for Friday was $20.56, with light choice prices reported at $157.93.
  • The operating margin index for cattle packers was $30.80 per head, indicating a positive trend for the industry.
  • The CME feeder index rose to $96.47, with analysts and traders predicting feeder futures to hit the $100.00 mark.

Statistics:

  • 235 loads of fabricated cuts were reported in beef movements on Friday.
  • Light choice prices reached $157.93, an increase of $0.41 from the previous day.
  • The choice/select spread for Friday was $20.56.
  • The CME feeder index rose to $96.47.
  • The operating margin index for cattle packers was $30.80 per head.
  • 126,000 head of cattle were estimated to be slaughtered on Friday, compared to 120,000 last week and 131,000 last year.
  • 31,000 head were harvested on Saturday, contributing to a weekly total of 663,000 head.

Sources:

  • COMTEX ()
  • OsterDowJones
  • http://www.comtexnews.com

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