Cattle Bounce on Thursday

Front month fat cattle futures ended the Thursday session with $0.50 to $0.77 gains. For June that has the contract at a net $1.12 gain for the week. USDA confirmed some moderate cash sales in TX near $170 on Thursday. The full range of sales across all regions was light in volume from $168 - $178. Feeder futures ended the session with $3.10 to $3.35 gains in the active months, having set new contract highs in the process. The CME Feeder Cattle Index for 5/17 was 43 cents higher to $202.61. 

CoF estimates range from a 4.5% decrease to a 2.9% decrease for May inventory. The average trade guess is to see a 3.5% decline to an implied 11.5m head. Analysts are looking for placements to come in 3.7% lower and for April marketings to be down 9.7% yr/yr. 

USDA reported 17,430 MT of beef sales for the week that ended 5/11. That was up 5% for the week, 25% below the same week last year. The week’s export shipments were 18k MT bring the total to 300.6k MT. That is 14% behind last year’s record pace. 

USDA’s Wholesale Boxed Beef report showed Choice boxes were up by 16 cents and Select was 72 cents higher in the PM update. USDA estimated the week’s running slaughter total at 504k head through Thursday. That is 2k head below last week’s pace and is up 8k from the same week last year. 

Jun 23 Cattle  closed at $165.525, up $0.700,

Aug 23 Cattle  closed at $163.625, up $0.500,

Oct 23 Cattle  closed at $167.750, up $0.675,

May 23 Feeder Cattle  closed at $206.100, up $1.550

Aug 23 Feeder Cattle  closed at $234.500, up $3.350

Sep 23 Feeder Cattle  closed at $237.225, up $3.275