Cattle Market Lower at Close

At the sound of the week’s closing bell live cattle futures were down by as much as $1.10. The losses were mostly up front and Feb ’21 futures closed with 32 cent gains. Feeder cattle futures were mixed after trading higher at midday. The front months were 2 to 7 cents higher at the close, save for August feeders which fell by 7 cents. The 05/21 Feeder Cattle Index from CME was 36 cents lower at $126.24. USDA Cattle on Feed inventory was 11.2m head on May 1st, down 5.14% yr/yr. The trade was expecting a 4-5% drop. USDA reported 1.432m head were placed, down 22.26%, and 1.459m head were marketed, down 24.33% from May 2019. USDA reported some light cash activity at $110 and $115 on Friday, but reported the bulk was $120 for the week. CoT numbers showed managed money was slightly more net long on the week to 13,204 contracts. Feeder cattle specs were 1,075 contracts net long on May 19. Wholesale boxed beef prices were lower again as they continue to unwind from the unprecedented peak. Choice boxes were down by $5.07 to $396.74 cwt. Select boxes were $8.35 lower to $374.18 cwt. USDA estimates FI cattle slaughter for the week at 555,000 head through Saturday. YTD slaughter is estimated at 12.113m head, trailing last year by 6.9%.

Jun 20 Cattle closed at $97.700, down $1.100,

Aug 20 Cattle closed at $97.325, down $0.900,

Oct 20 Cattle closed at $99.400, down $0.500,

Aug 20 Feeder Cattle closed at $128.800, down $0.075

Sep 20 Feeder Cattle closed at $130.150, up $0.025

Oct 20 Feeder Cattle closed at $131.250, up $0.075

--- provided by Brugler Marketing & Management

Market Commentary provided by:

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