Beef industry suffers continued setback as cattle collapse on Wednesday
In the agricultural sector, there have been some notable movements in livestock markets this week.
On Wednesday, a few Southern sales were reported at $239, marking a significant figure in the region's cattle market. However, no new sales information has been reported since then.
In the realm of wholesale beef, the USDA reported a decrease in Boxed Beef prices in the Wednesday PM report. The specific figures were not disclosed, but the trend indicates a downward shift in the market.
Austin Schroeder, an agricultural economist known for his expertise in cattle markets, has shared his insights. He predicts that futures prices for dairy cows will reflect tightening supplies, while the USDA Cattle on Feed Report may indicate stable to slightly declining feedlot inventories. It's important to note that Mr. Schroeder did not have positions in any of the securities mentioned in this article.
As for the futures markets, Live Cattle for October 25 closed at $231.100, with December 25 Live Cattle closing at $232.675. Feeder Cattle futures saw a decrease on Wednesday, with prices falling $3.30 to $5.30. However, the CME Feeder Cattle Index for the date of publication was not specified.
Looking back at previous weeks, Nov 25 Feeder Cattle closed at $344.125, down $5.275, while Sep 25 Feeder Cattle closed at $355.025, down $3.300. Oct 25 Feeder Cattle closed at $349.125, down $5.175.
Cash trade has yet to start this week, with no sales reported in this morning's Fed Cattle Exchange online auction from Central Stockyards, where 1,250 head were offered with bids at $230-235.
In the beef boxes sector, the Choice boxes were down $4.44 at $388.18 in the Wednesday PM report, while the Select boxes were $6.80 lower to $366.37.
It's essential to remember that the information and data presented here are solely for informational purposes. Always consult with a financial advisor before making any investment decisions.
