Live cattle posted higher trade on Tuesday, with contracts closing 75 cent to $1.87 higher. Cash trade this week has been quiet so far, with a few light trades of $192 in the north being picked up.  USDA reported cash sales of $186 in the South and up to $190 in the North last week. Feeder cattle saw gains of $1.35 to $2.25 across the board on Tuesday. The CME Feeder Cattle index was up 88 cents on May 20 to $247.75. The basis is firming ahead of contract expiration, with May futures now less than $2 premium the cash.

The average trade estimates for Friday’s Cattle on Feed report put April placements down 6.1% from last year, with April marketings up 9.8%. That would leave the May 1 on feed inventory down 0.8% from May 2023. 

USDA’s Wholesale Boxed Beef prices were higher in the Tuesday afternoon report. Choice boxes were up 32 cents at $313.02, with Select $1.52 higher to $300.87. That narrowed the Chc/Sel spread to $12.15. Tuesday’s estimated FI cattle slaughter was at 122,000 head by the USDA, taking the weekly total to 242,000 head. That is up 3,000 head from last week but down 11,357 head below the same week last year. 

Jun 24 Live Cattle  closed at $182.975, up $1.500,

Aug 24 Live Cattle  closed at $180.425, up $1.875,

Oct 24 Live Cattle  closed at $183.150, up $1.325,

May 24 Feeder Cattle  closed at $248.950, up $2.250,

Aug 24 Feeder Cattle  closed at $259.825, up $1.350,

Sep 24 Feeder Cattle  closed at $261.125, up $1.475,

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.