Cattle Rally After Digesting USDA Data
Live cattle closed Monday with contracts up $2.35 to $3.20 in fallout from friendly the USDA Cattle on Feed report. Cash action picked up on Friday, with some $183-184 live and $292 dressed action reported in the North, steady to down $1 from the previous week. Southern trade was steady, at $182. Feeders were up $3.17 to $4.97 across most contracts, with April $1.57 higher ahead of Thursday’s Expiration. The CME Feeder Cattle index was back up 38 cents on April 19 to $242.11.
USDA’s Cattle on Feed report showed 1.746 million head placed during March, down 12.35% from a year ago, and below the average trade guess of down 7%. March marketings were down 13.71% at 1.706 million head, vs. trade estimates to be 11.9% lower. April 1 on feed inventory was up 1.49% at 11.821 million head, below the trade’s expected 2.1% incline from last year.
USDA’s Wholesale Boxed Beef prices were back higher in the Monday afternoon report. Choice boxes were 26 cents higher to $295.913, with Select up $1.04 to $291.48. That took the Chc/Sel spread down to $4.06. USDA estimated cattle slaughter at 113,000 head for Monday. That was down 8,000 head from the previous week and 12,147 head below the same week last year.
Apr 24 Live Cattle closed at $183.825, up $2.350,
Jun 24 Live Cattle closed at $178.050, up $2.375,
Aug 24 Live Cattle closed at $176.400, up $2.850,
Apr 24 Feeder Cattle closed at $242.900, up $1.575,
May 24 Feeder Cattle closed at $245.175, up $3.175,
Aug 24 Feeder Cattle closed at $258.475, up $4.975,
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.