Cattle Futures Rally After Weekend

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Live cattle futures are trading $2.90 to $3.35 higher at midday, with cash trade settling in at $234-236 live last week. Feeder cattle futures are rallying $6.10 to $7.20 so far on Monday. The strike at the JBS plant in Greeley, Colorado has moved forward over the weekend, with the workers union starting picketing.

Why it matters

Cattle futures prices are an important indicator of the overall health and direction of the beef industry. Significant price movements can impact producers, processors, and consumers. The labor dispute at the JBS plant in Greeley also has implications for beef supply and processing capacity.

The details

The CME Feeder Cattle Index was down $2.62 to $358.35 on March 12. The Monday OKC Feeder cattle auction has an estimated 4,500 head for sale, with a higher undertone noted. CFTC data showed managed money cutting back 5,487 contracts from their net long position in live cattle in the week ending on March 10, taking that net long to 109,032 contracts. In feeder cattle futures and options, specs added just 114 contracts to their net long to 18,070 contracts. Wholesale Boxed Beef prices were higher in the Monday morning report, with the Choice/Select spread at $7.14.

• On March 12, the CME Feeder Cattle Index was down $2.62 to $358.35.
• The Monday OKC Feeder cattle auction on March 16 has an estimated 4,500 head for sale.
• In the week ending on March 10, managed money cut back 5,487 contracts from their net long position in live cattle.