Cattle Close Higher into CoF

The fat cattle futures market ended the last trade day of the week 20 to 70 cents higher, and near the highs for the week. October and February contracts saw new LoC highs this week. USDA confirmed some moderate cash sales action again on Friday. The week’s bulk prices were $2 stronger near $178 in NE and steady near $170 in TX. The feeder cattle futures market settled up by 17 to 72 cents. May feeders are set to roll off the board with the close next Thursday. The CME Feeder Cattle Index was 25 cents weaker on 5/18 to $202.36. 

Weekly CoT data had managed money spec traders building their net long in live cattle through the week that ended 5/16. The group extended their net long by 5k contracts to 100,272. Spec traders were also buying feeders during the week, extending their net long by 2.2k contracts to 14,618. 

NASS confirmed 11.608m head of cattle on feed in 1,000+ head lots on May 1st. That was down 3.44% from last year’s inventory and matched the pre-report estimate. April placements were 1.748m head, that was down 4.2% yr/yr. The average pre-report estimate was to see a 3.7% drop off. The COF report showed April marketings of 1.701m head, down 10% as anticipated. 

Friday’s Wholesale Boxed Beef report had Choice at $301.10, up by $279, and Select at $283.94 after a 33 cent boost. The rib primals were $431.47 cwt. and $389.84 cwt. respectively. USDA estimated the week’s FI cattle slaughter at 642,000 head through Saturday, for a year-to-date total of 12.565 million. Last year’s pace was 12.988m head.

Jun 23 Cattle  closed at $165.725, up $0.200,

Aug 23 Cattle  closed at $164.300, up $0.675,

Oct 23 Cattle  closed at $168.450, up $0.700,

May 23 Feeder Cattle  closed at $206.275, up $0.175

Aug 23 Feeder Cattle  closed at $235.100, up $0.600

Sep 23 Feeder Cattle  closed at $237.950, up $0.725