Cattle Falling on Wednesday Following Packing Plant Lockout

Live cattle futures are falling on Wednesday, with contracts down $1.52 to $4.10 at midday.  Cash trade has been limited so far this week after $260-265 sales last week. The Wednesday Fed Cattle Exchange online auction showed no sales on the 652 head offered, with bids of $259-260. Feeder cattle futures are slipping back with contracts down $1.75 to $2, as soon to expire May is up 82 cents. The CME Feeder Cattle Index was down $1.83 to $369.46 on May 18. 

The Tuesday APHIS update on the New World Screwworm showed a total of 1,889 active cases of in Mexico as of Monday. There were 156 active cases in the bordering state of Tamaulipas (7 within a range of 82-96 miles of the US border), 48 active in Nuevo Leon (14 within a range of 57-99 miles of the US border), and 15 in Coahuila (1 within 72 miles of the US border).

Cargill’s Fort Morgan beef plant has initiated a lockout of employees following months of bargaining and negotiations. While the 4,700 capacity plant  being offline does limit kill capacity, most affect will likely see cattle shifted around to other plants. Slaughter ready cattle supplies still remain tight.

Wholesale Boxed Beef prices were mixed in the Wednesday morning report, with the Chc/Sel spread at a 65 cent premium to Select. Choice boxes were up $1.54 to $394.21, while Select was $1.28 higher at $394.86. USDA estimated federally inspected cattle slaughter for Tuesday at 110,000 head, with the weekly total at 213,000 head. That was up 3,000 head from the week prior but 23,103 head below the same week last year. 

Jun 26 Live Cattle  closed at $253.025, down $1.525,

Aug 26 Live Cattle  closed at $244.175, down $3.075,

Oct 26 Live Cattle  closed at $235.200, down $4.100,

May 26 Feeder Cattle  closed at $370.400, up $0.825,

Aug 26 Feeder Cattle  closed at $361.900, down $1.750,

Sep 26 Feeder Cattle  closed at $359.025, down $1.975,