Live cattle futures are showing another round of weakness with contracts down 60 cents $1. Cash trade crept in on Tuesday and Wednesday with some southern trade at $183-184 and northern action at $295 in the beef. The Central Stockyards Fed Cattle Exchange saw no sale of 1,736 head, with bids of $182-183.25. Feeder cattle futures are up 55 to 70 cents in the nearbys with October down 40 cents. The CME Feeder Cattle Index was down 14 cents at $243.85 on August 19.
Pressure this week has likely come from a risk off approach due to the recent ‘price gouging’ agenda put forth by the Harris candidacy economic proposal, as well as lack of Boxed Beef strength ahead of the Labor Day weekend.
A Reuters survey of analysts shows expectations of July feeder cattle placements up 3.2% from a year ago, as marketings are expected to be 8.1% larger than July 2023. August 1 on feed inventory is estimated as steady with last year.
USDA wholesale Boxed Beef were back higher in the Wednesday AM report. Choice boxes were up 67 cents at $315.75, with Select products $1.20 higher @ $302.24. The Chc/Select spread was thus narrowed to $13.51. USDA estimated Tuesday’s federally inspected cattle slaughter at 124,000 head, with the weekly total at 241,000. That is up 7,000 head from the previous week and 6,450 head below the same week last year.
Aug 24 Live Cattle are at $180.425, down $0.600,
Oct 24 Live Cattle are at $174.625, down $0.975,
Dec 24 Live Cattle are at $174.150, down $0.950,
Aug 24 Feeder Cattle are at $238.900, up $0.70
Sep 24 Feeder Cattle are at $235.050, up $0.550
Oct 24 Feeder Cattle are at $230.925, down $0.400
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