Cattle Fading Early Strength for Midday Losses on Tuesday

Live cattle futures are falling $1.22 to $2.15 at midday. Cash trade from last week was been $260 to $265 across the country, with late sales slipping to $258-260. Feeder cattle futures are slipping back $2 to $2.35 on Tuesday, fading off the early gains. The CME Feeder Cattle Index was down $2.52 to $368.20 on May 21. 

CFTC data showed managed money trimming just 773 contracts from their net long in live cattle futures and options as of Tuesday, taking it to 130,113 contracts. In feeder cattle futures and options, specs were adding back some length (mainly via fewer shorts), adding 1,194 contracts to their net long to 16,380 contracts.

USDA’s Cattle on Feed report showed April placements at 1.702 million head, up 5.52% vs. last year and above the +3.4% estimates. Marketings were down 10.03% from a year ago at 1.642 million head. May 1 on feed inventory was tallied at 11.584 million head, up 1.83% yr/yr. compared to estimates looking for a 1.6% increase.

April 30 beef stocks were pegged at 408.34 million lbs via the monthly Cold Storage report. That was up just 0.34% vs. the end of March and down 2.6% from last year.

Wholesale Boxed Beef prices were lower in the Tuesday AM report, with the Chc/Sel spread at $3.03. Choice boxes were up $1.98 to $392.25, while Select was $4.22 higher at $389.22. USDA estimated federally inspected cattle slaughter for last week at 528,000 head. That was down 7,000 head from the week prior and 48,278 head below the same week last year. 

Jun 26 Live Cattle  are at $247.150, down $2.150,

Aug 26 Live Cattle  are at $237.825, down $1.775,

Oct 26 Live Cattle  are at $229.500, down $1.225,

Aug 26 Feeder Cattle  are at $347.825, down $2.025

Sep 26 Feeder Cattle  are at $344.675, down $2.225

Oct 26 Feeder Cattle  are at $341.275, down $2.350