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Cattle Traders Look to Respond to Cattle on Feed Data After Long Weekend

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

Live cattle futures were up 25 cents to $1.02 lower on Friday, with June down $4.60 last week. Open interest was down 3,356 contracts on Friday. Cash trade from last week has been $260 to $265 across the country, with late sales slipping to $258-260. Feeder cattle futures were down $4.42 to $6.67 at the close on Friday, $4-5 off the lows in most contracts. August was down $11.60 last week. Open interest dropped 2,899 contracts, implying some longs coming off the table. 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 Friday afternoon report, with the Chc/Sel spread at $5.27. Choice boxes were down $1.21 to $390.27, while Select was 65 cents lower at $385.00. 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  closed at $249.300, up $0.150,

Aug 26 Live Cattle  closed at $239.600, up $0.250,

Oct 26 Live Cattle  closed at $230.725, down $0.225,

Aug 26 Feeder Cattle  closed at $349.850, down $6.675,

Sep 26 Feeder Cattle  closed at $346.900, down $6.475,

Oct 26 Feeder Cattle  closed at $343.625, down $6.000,


On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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