June cattle closed moderately lower on the session yesterday but well up from the mid-session lows. The current futures discount to the cash market has been widely seen to be providing support but the market has given back nearly half of the gains from the last few sessions. June closed yesterday at 113.52, so the market may be pricing in a significant drop in cash prices during upcoming weeks. With several of the more active demand weekends of the year just ahead, some traders believe that the market may have found some measure of support. While there is a smaller showlist this week, a few cash cattle have traded at $120.00 in Nebraska this week. That is down $1.00-$2.00 from last week while in the southern plains, bids are near $117 with offers at $122. Other traders were selling June and buying deferreds yesterday in anticipation of index funds rolling long positions next week. Slaughter came in at 126,000 head, which was higher than expected and may suggest improving packer demand for live inventory. This brings the total for the week so far to 238,000 head, down from 246,000 head last week at this time and down from 259,000 head a year ago. Boxed beef cutout values were up 34 cents at mid-session yesterday and closed 14 cents higher at $190.47. This was up from $189.94 the prior week.
Join the Discussion