Live cattle futures are strengthening up ahead of the June Cattle on Feed report, as contracts are up 37 cent to $1.30. Trade talk has been slow to develop this week, with a few bids of $184-185 in KS and $197 so far in NE. Friday’s Central Stockyards Fed Cattle Exchange auction saw sales of $193 in IA and $195 in CO, with both sales using their BidTheGrid™ method. Live bids were limited to $185-185.25 in TX, with asks of $189. Feeder cattle futures are feeling some pressure, with 10 to 22 cent losses. The CME Feeder Cattle Index was back up 32 cents on June 19 at $255.79.
Export Sales data indicated a total of 14,872 MT of beef sold in the week of June 13, a 3-week high. Export Shipments totaled 16,752 MT, the largest in 4-weeks.
USDA will release an updated Cattle on Feed report this afternoon, with the trade expecting to see May placements down 1.5% from a year ago. There are some contrarian thoughts, with traders calling for anything from a 5% drop to a 2.4% increase. May marketings are seen up 0.5% on average. June 1 Cattle on Feed is projected to be down 1% vs. last year.
USDA wholesale Boxed Beef prices were reported lower in the Friday AM report. Choice boxes were down 52 cents to $322.35/cwt, with Select back $1.74 lower at $302.66. The Chc/Select spread widened to $19.69. USDA estimated FI slaughter for Thursday at 121,000 head, with the weekly total at 481,000. That is down 8,000 head from the previous week and 23,561 head below the same week last year.
Jun 24 Live Cattle are at $187.800, up $0.725,
Aug 24 Live Cattle are at $183.825, up $1.275,
Oct 24 Live Cattle are at $184.200, up $0.375,
Aug 24 Feeder Cattle are at $259.675, down $0.150
Sep 24 Feeder Cattle are at $261.075, down $0.100
Oct 24 Feeder Cattle are at $261.650, down $0.225
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