Midday Weakness in Cattle Markets

So far through Thursday’s midday, the live cattle futures market is down 20 to 57 cents. Feeders are another triple digits weaker after returning to the early week direction after the midweek recovery. The USDA reported light Tuesday cash deals near $135 in the South. Feeder cattle futures bounced back with triple digit Wednesday gains of $1.15 to $1.67. The CME Feeder Cattle Index was $169.02, down by $1.99 for 7/22.

USDA’s weekly FAS data showed beef bookings were 25.3k MT during the week that ended 7/21. That was a 6% increase wk/wk and a 66% increase from the 4-week average. South Korea and Japan were the top buyers for the week, each with over 7k MT. Beef shipments from the report were also 20.3k MT, again led by shipments to South Korea and Japan. 

USDA’s Wholesale Boxed Beef prices were weaker by $1.12 in Choice and $2.07 in Select on Wednesday. USDA reported Wednesday cattle slaughter at 125k head for 374,000 head week to date. That matches last week.  

Aug 22 Cattle  is at $136.200, down $0.600,

Oct 22 Cattle  is at $141.825, down $0.500,

Dec 22 Cattle  is at $147.825, down $0.325,

Aug 22 Feeder Cattle is at $177.700, down $1.400

Sep 22 Feeder Cattle  is at $180.500, down $1.350