Live Cattle Futures Rise as Slaughter Rates Increase

At midday, live cattle futures are trading 55 to 80 cents higher. This week, the cash market hasn’t seen a broad test yet, although some light sales in Kansas were reported at $219 on Monday. The online Fed Cattle Exchange auction on Wednesday morning displayed no sales from the 1,298 head offered, with bids ranging from $216 to $217. Meanwhile, feeder cattle futures are 60 to 70 cents lower, with May futures up 37 cents. On May 19, the CME Feeder Cattle Index fell another $1.53 to an average price of $297.33.

Wholesale Beef Prices Show Gains

The USDA’s National Wholesale Boxed Beef report for Wednesday morning indicated an increase, with the Choice/Select spread narrowing to $10.44. Choice boxed beef rose by 71 cents to $359.46, while Select posted a price of $349.02, up $4.06 per hundred pounds. Additionally, USDA estimated the federally inspected cattle slaughter for Tuesday at 120,000 head, bringing the weekly total to 235,000 head. This figure represents a rise of 15,000 head from the previous week, though it is down by 807 head compared to the same week last year.

Current Market Prices

Jun 25 Live Cattle: $213.975, up $0.800

Aug 25 Live Cattle: $208.425, up $0.575

Oct 25 Live Cattle: $205.975, up $0.675

May 25 Feeder Cattle: $296.375, up $0.375

Aug 25 Feeder Cattle: $296.825, down $0.675

Sep 25 Feeder Cattle: $295.525, down $0.675

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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