Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Cattle Futures Sliding on Supply Concerns

September 27, 2016 at 0:06 by Brent Lantzy

The USDA’s September Cattle on Feed report showed August placements up by 15% year on year, marketings up by 18% compared to last August, and the number of cattle on feed as of September 1 at 10,135 thousand head, up 1% from this time in 2015.

According to a Drovers article, the average trade predictions prior to release were for placements to be up 13.1%, marketings to be up 17.5%, and September 1 cattle on feed to be at 1.2%.

Beef production is 17% above the previous year at 2.26 billion pounds, and cattle slaughter is up 18% from August 2015 at 2.75 million head, according to monthly data released by the USDA. The data also shows average live weight dropped 11 pounds from last year to 1,352 pounds.

The most actively traded CME live cattle contract for December delivery fell 1 cent on Monday to close at $1.05850 per pound, while the front month October contract fell 0.725 cent to settle at $1.06550 per pound. The February 2017 contract dropped 0.950 cent to settle at $1.06150 per pound.

October feeder cattle dropped 1.525 cents on Monday to settle at $1.30850 per pound, while the November contract lost 2.050 cents to close at $1.27675 per pound. The CME feeder cattle index price dropped 1.525 cents to $1.30850 per pound.

Midday choice beef cutout price for September 26 is up $0.23 from the previous day at $187.04 per cwt, while the select cuts are up by $0.84 to $179.65 per cwt, according to data provided by the USDA.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply