Cattle Surge on Tuesday
On Tuesday, live cattle displayed robust triple-digit gains, with the April contract reverting back above the $180 mark. Notably, Monday marked the first notice day for April live cattle, yet no deliveries were issued, with expectations remaining subdued as long as futures linger below cash levels.
Cash Action Recap
Last week’s cash market activity hovered around $183-184 in the southern region and $187-189 in the North. Activity this week has primarily revolved around compiling showlists, with Wednesday’s Fed Cattle Exchange electronic auction listing 751 head. Feeder cattle also witnessed triple-digit gains, spearheaded by May, which saw a notable $2.27/cwt uptick. The CME Feeder Cattle index on April 8th showed a minor decline, slipping $2.79 to $245.83.
USDA Announcement
In a recent press release, the USDA declared its decision to forgo releasing a July Cattle Inventory report this year, citing budgetary constraints.
Wholesale Boxed Beef Prices and Slaughter Stats
USDA’s Wholesale Boxed Beef prices exhibited a mixed trend in the Tuesday PM report, with Choice edging up by a mere 2 cents to $302.09, while Select dipped by 37 cents to $299.90. The Chc/Sel spread remains unusually narrow at just $2.19. Furthermore, USDA’s estimated cattle slaughter for Tuesday stood at 125,000 head, pushing the week-to-date total to 246,000 head. This represents a significant upsurge of 17,000 head from the previous week and a notable increase of 10,179 head from the same period last year.
Closing Figures
Here are the closing figures for select cattle futures:
- Apr 24 Cattle closed at $180.700, up $1.300
- Jun 24 Cattle closed at $174.850, up $1.525
- Aug 24 Cattle closed at $172.550, up $1.650
- Apr 24 Fdr Cattle closed at $240.700, up $1.400
- May 24 Fdr Cattle closed at $239.450, up $2.275
- Aug 24 Fdr Cattle closed at $250.100, up $1.850
Please note that on the publication date, Alan Brugler did not hold positions, whether directly or indirectly, in any of the securities covered in this article. The information presented here is for informational purposes only. For further details, please refer to the Barchart Disclosure Policy.
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