Live Cattle Futures Slip Friday After Recent Gains; Feeder Cattle Decline

Live cattle futures retreated on Friday, closing $1.05 lower at $1.625. August contracts fell 47 cents for the week, and open interest increased by only 386 contracts. Cash trades rose modestly, reaching $255 nationally and up to $256 in the North. Feeder cattle futures also declined, dropping $1.77 to close at $2.30, while August feeder contracts held at $3.525. Open interest rose by 485 contracts, and the CME Feeder Cattle Index fell $2.09 to $368.01 on June 10.

JBS announced the planned shutdown of its Souderton, PA slaughter plant, which has a capacity of over 2,000 head per day.

Managed money reduced its net long position by 5,962 contracts in the week ended June 9, bringing its total to 109,002 contracts in live cattle futures and options. CFTC data showed speculators added 77 contracts to a net long of 10,920 contracts in feeder cattle futures and options.

Wholesale boxed beef prices eased in the Friday PM report. The Choice/Select spread fell to $19.21. Choice beef boxes dropped $1.28 to $391.93, while Select boxes declined 53 cents to $372.72. USDA reports federally inspected cattle slaughter for the week at 524,000 head, down 7,000 from the prior week and 36,282 below the same week last year.

Recent settlement prices:

• June 26 Live Cattle: $249.875, down $1.60
• August 26 Live Cattle: $241.175, down $1.50
• October 26 Live Cattle: $233.800, down $1.60
• August 26 Feeder Cattle: $357.425, down $2.225
• September 26 Feeder Cattle: $354.550, down $1.975
• October 26 Feeder Cattle: $350.925, down $1.875

On the date of publication, Austin Schroeder had no positions, directly or indirectly, in any of the securities mentioned in this article. All information is provided for informational purposes only. For details, see the Barchart Disclosure Policy.

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