Sharp Gains from Cattle on Friday

Live cattle futures were $1.10 to $1.65 higher on the day. June’s weekly move was a $2.47 gain, and nearly recovered all of last week’s pullback. USDA quoted the bulk of the cash market at $170 for the South and $175 - $177 for the North this week. Feeder cattle futures settled with $1.35 to $2.90 gains on Friday, which helped move the August contract to a weekly gain of $7.55. The CME Feeder Cattle Index for 5/11 was $200.58, up by $1.12. 

The weekly Commitment of Traders update showed long liquidation from the live cattle spec traders. The group was still 95,279 contracts net long on 5/9. CFTC reported managed money firms at 12,366 contracts net long in feeder cattle, down by 2.2k from last week also via long liquidation. 

USDA’s quarterly beef production estimates revised the Q3 output 40m lbs lower, but that was offset via a 190m Q4 increase. Total 2023 output was set at 26.921 billion lbs. USDA also provided the first glimpse at 2024 output, estimated at 24.745 billion. That would be down 2.176b lbs yr/yr to the tightest since 2015. 

USDA’s Wholesale Boxed Beef report had Choice boxes $1.11 weaker at $304.61 and Select boxes 10c higher to $284.68. USDA estimated the week’s FI cattle slaughter at 646k head through Saturday. That is up from 623k last week, but down from 651k head during the same week last year. YTD slaughter reached 11.925 million head, trailing last year by 3.1%. 

Jun 23 Cattle  closed at $164.400, up $1.450,

Aug 23 Cattle  closed at $162.450, up $1.650,

Oct 23 Cattle  closed at $166.150, up $1.600,

May 23 Feeder Cattle  closed at $205.475, up $1.350

Aug 23 Feeder Cattle  closed at $228.975, up $2.900

Oct 23 Feeder Cattle  closed at $234.150, up $2.450