Fat cattle futures closed up by 7 to 35 cents past April’s 52 cent giveback on Wednesday. The April contract is still a $4.80 premium to the June contract. Feeders led the rally, helped by weaker corn prices, and closed the day with $1.40 to $2.05 gains. The fall months remain a sharp premium to March. USDA has limited cash trade for the week. The weekly FCE auction saw no cash trade between $163-$164 and asks from $165. had no cash cattle sales between the $163-$164 bids and $165-$166 asks for the 1,114 head listed. The 3/7 CME Feeder Cattle Index was $188.33, up by another 29 cents.
USDA raised their beef production by 170m lbs to 26.665 billion. The Q1 was up 15m, Q2 was 40 higher, and Q3 was upped by 115 to 6.645 billion. USDA cited larger than initially expected cow slaughter and Q1 placements.
Monthly Census data showed beef shipments were 242.6m lbs for Jan. That was 4-yr low for the month.
Wholesale Boxed Beef prices were mixed in the PM report as choice was $3.15 lower but Select was up by 63 cents. USDA estimated the week’s FI cattle slaughter at 378,000 head through Wednesday. That is 2,000 more than last week’s pace and is up 7,000 from the same week last year.
Apr 23 Cattle closed at $165.450, down $0.525,
Jun 23 Cattle closed at $160.650, up $0.100,
Aug 23 Cattle closed at $160.175, up $0.075,
Mar 23 Feeder Cattle closed at $193.750, up $1.625
Apr 23 Feeder Cattle closed at $200.075, up $1.400
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.
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