Cattle Traders Look to Square Up Following Holiday, Ahead of USDA Data

Traders are looking to get into position ahead of the Cattle on Feed report later this afternoon. Futures posted 67 cent to $1.05 gains on Wednesday, followed by a holiday break.  Cash trade has pulled back this week with $236 reported in the north, down $4-6 and $231 in the south, $5 lower. Feeder cattle futures posted slight Wednesday strength, up 80 to 90 cents on the day. The CME Feeder Cattle Index was down 42 cents on June 17 with an average price of $311.04. 

A Reuters survey of analysts shows June 1 cattle on feed estimated at 1.1% below last year ahead of this afternoon’s monthly Cattle on Feed report. May placements are expected to be down 5.9%, with marketings seen dropping 9.3%.

National Wholesale Boxed Beef price action continued higher in the Thursday afternoon USDA report, with the Chc/Sel spread at $19.20. Choice boxes were up another $4.92 to $393.79, while Select was quoted $1.85 higher at $374.59/cwt. USDA’s Federally inspected cattle slaughter for Thursday was estimated at 117,000 head, with the weekly total at 451,000. That is 5,000 head below the week prior and 28,373 head below the same week last year.

Jun 25 Live Cattle  closed at $224.300, up $1.050,

Aug 25 Live Cattle  closed at $211.675, up $1.025,

Oct 25 Live Cattle  closed at $209.225, up $0.675,

Aug 25 Feeder Cattle  closed at $304.175, up $0.825,

Sep 25 Feeder Cattle  closed at $303.800, up $0.900,

Oct 25 Feeder Cattle  closed at $301.900, up $0.900,