Tuesday markets
Despite a neutral Cattle on Feed report, cattle futures closed lower but off the session lows.
“Most believed that Friday’s encouraging Cattle on Feed report would help propel the market into at least steady, if not higher, trade early this week, but traders have a different feel of the market as the live cattle contracts are trading well over $1 lower into today’s noon hour,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures regained some ground, with the June contract down 67 cents to $215.12 and the August contract down $1.15 to $209.30.
Cash trade was light, with only 251 head sold for $230.
On the formula side, 33,300 head averaging 920 lbs. sold for an average of $356.75.
“Last week, Northern dressed cattle traded on Wednesday for a wide range of $354 to $370, but mostly at $360, which is $2 higher than the previous week’s weighted average,” Stewart wrote. “Southern live cattle traded on Friday at mostly $219 to $220, which is steady to $1.00 lower than the previous week’s weighted average.”
Today’s slaughter is estimated to be 114,000 head, 6,000 head lower than a week earlier. Total slaughter for the prior week is projected to be 570,000 head.
Boxed beef prices were mixed on 112 loads, with the Choice cutout up 30 cents to $361.85 and the Select cutout down 49 cents to $350.83.
USDA’s Cattle on Feed report estimated there were 11.376 million head of cattle in large feedlots (1,000-plus head) as of May 1, down 178,000 head (1.5%) from year-ago. April placements declined 2.6%, while marketings dropped 2.5%.
Friday also saw the release of the Cold Storage report, which showed that total red meat supplies in freezers were up 5% from the previous month but down 6% from last year. Total pounds of beef in freezers were down 2% from the previous month to 4.18 million lbs. and down 2% from last year. Frozen pork supplies increased by 11% from the previous month but decreased by 9% from the same period last year.
Feeder Cattle
Feeder cattle futures closed triple digits lower, with the August contract down $2.22 to $298.15 and the September contract down $2.10 to $297.25.
The CME Feeder Cattle Index was down 23 cents to $295.46.
Corn futures closed mixed, with the July contract unchanged at $4.59 and the September contract down 4 cents to $4.33.
No auction markets to report due to the Memorial Day holiday. — Charles Wallace, WLJ contributing editor
