Live cattle are posting some turnaround strength from last week’s action, with contracts up 25 to 70 cents. Preliminary open interest confirmed long liquidation, dropping 8,705 on the day. Today is first notice day for April live cattle. Feeder cattle are the weak spot at midday, with losses of 92 cent to $1.47 at midday, with exception to April, up 45 cents. Last week’s cash action was in the $183-184 range for the south and $187-189 in the North. The CME Feeder Cattle index on April 4th was down 93 cents to $248.97.
CFTC reported long liquidation from the cattle spec traders during the week that ended 4/5. That left the group on a 53k contract net long – the weakest since mid/late Feb.
USDA’s Wholesale Boxed Beef prices shot higher in the Monday morning report. Choice was back up $4.59 to $301.76, with Select $6.78 higher at $301.48, to narrow the Chc/Sel spread to just 28 cents. USDA reported last week’s beef output at 4.2% above last week for 513.7 million lbs. That came on a 4% larger estimated slaughter of 609k head. Cumulative totals were 6.971 billion lbs and 8.319m head respectively.
Apr 24 Cattle are at $178.650, up $0.400,
Jun 24 Cattle are at $172.375, up $0.325,
Aug 24 Cattle are at $170.225, up $0.250,
Apr 24 Feeder Cattle are at $238.150, up $0.450
May 24 Feeder Cattle are at $236.800, down $1.375
Aug 24 Feeder Cattle are at $247.150, down $1.475
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