Cattle Strength Continuing on Thursday

Live cattle futures are holding onto strength at midday, with contracts up 17 to 60 cents at midday. Cash trade has been slower this week following last week’s strength. This morning’s Fed Cattle Exchange online auction showed no bids/sales on the 1,258 head offered. Feeder cattle futures are up 20 to 60 cents in the front months, with other contracts heading lower. The CME Feeder Cattle Index was back up $0.54 on March 18, with the average price at $284.65. 

Beef export sales in the week ending on May 13 were tallied at 10,173 MT, the second lowest this MY. South Korea was the largest buyer of 3,000 MT, with Japan buying 2,800 MT.  Shipments totaled 15,329 MT, which was back down from last week. Of that total, South Korea was destined for 3,900 MT, with 3,800 MT to Japan. 

Ahead of the Friday Cattle on Feed report, analysts estimate to see February placements down 14% from last year on average, with Feb marketings down 8.1%. Last year included 1 more day. March on feed data is expected to total 98.3% compared to the level last year. 

USDA’s National Wholesale Boxed Beef report was back to higher on Thursday morning, as the Chc/Sel widened to $19.53. Choice boxes were up $34 cents to $329.95/cwt, with Select $1.74 higher at $310.42. Wednesday’s Federally inspected cattle slaughter was estimated at 96,000 head by USDA, hampered by the blizzard in parts of NE and IA, with the week to date total at 333,000 head. That is 29,000 head below the previous week, and down 21,900 from the same week last year.

Apr 25 Live Cattle  are at $207.000, up $0.175,

Jun 25 Live Cattle  are at $203.375, up $0.525,

Aug 25 Live Cattle  are at $200.450, up $0.375,

Mar 25 Feeder Cattle  are at $287.300, up $0.475

Apr 25 Feeder Cattle  are at $286.925, up $0.200

May 25 Feeder Cattle  are at $287.475, down $0.025