Strong Basis Maintained for Cattle

After the grain markets began bouncing back into the close, front month live cattle futures closed off their highs with 22 to 42 cent losses. The Wednesday FCE auction hosted by Central Stockyards resulted in no sales from $136 bids to $137-$139 asks. Tuesday’s auction sold 131 head of the 1,645 head listed for $134 to $137.50. USDA reported moderate cash business in NE for Wednesday mostly near $140. The bulk of Southern trade for the week has been near $137.  Feeder cattle futures also faded in the afternoon and ended the midweek mixed within 20 cents of UNCH. The 5/23 CME Feeder Cattle Index was $153.17 after bouncing back by 45 cents. 

Wholesale Boxed Beef prices were weaker this afternoon with Choice down by 72 cents to $262.93 and Select $1.29 weaker to $244.06. USDA quoted Choice rib primals at $402.36 cwt. compared to Select’s $344.79. Federally inspected cattle slaughter was estimated at 375,000 head for the week through Wednesday. That is up 1k head from last week, and is 15k above the same week last year. 

Jun 22 Cattle  closed at $132.300, down $0.425,

Aug 22 Cattle  closed at $132.525, down $0.225,

Oct 22 Cattle  closed at $138.200, down $0.425,

May 22 Feeder Cattle  closed at $154.600, up $0.100

Aug 22 Feeder Cattle  closed at $167.950, down $0.200