Live cattle futures closed the Wednesday session with losses of 90 cents to $2.52. Cash trade has been limited so far this week with a few $260 sales in KS and $265 in the North. The Wednesday Fed Cattle Exchange online auction showed no sales on the 652 head offered, with bids of $259-260. Feeder cattle futures rallied late into the Wednesday close, as contracts were up 52 cents to $2.125 on the day. The CME Feeder Cattle Index was down $2.98 to $372.44 on May 19.
Cargill’s Fort Morgan, CO, beef plant has initiated a lockout of employees following months of bargaining and negotiations. While the 4,700 capacity plant being offline does limit kill capacity, most affect will likely see cattle shifted around to other plants. Slaughter ready cattle supplies still remain tight.
Wholesale Boxed Beef prices were lower in the Wednesday afternoon report, with the Chc/Sel spread at $2.49. Choice boxes were down $2.13 to $393.62, while Select was $2.45 lower at $394.86. USDA estimated federally inspected cattle slaughter for Wednesday at 108,000 head, with the weekly total at 321,000 head. That was up 3,000 head from the week prior but 36,571 head below the same week last year.
Jun 26 Live Cattle closed at $253.275, down $1.275,
Aug 26 Live Cattle closed at $245.300, down $1.950,
Oct 26 Live Cattle closed at $236.775, down $2.525,
May 26 Feeder Cattle closed at $370.725, up $1.150,
Aug 26 Feeder Cattle closed at $365.775, up $2.125,
Sep 26 Feeder Cattle closed at $362.625, up $1.625,
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.
