Live and feeder cattle futures are rallying, driven by strong cash trade with Southern sales at $224-225 on Wednesday and bids reaching $235 in the North today. Despite the futures gains, beef export sales hit a 5-week low at 8,978 MT for the week ending May 29, and April beef shipments totaled 237.2 million lbs, a 5-year low, down 7.3% from March, while boxed beef prices are mixed, widening the Choice/Select spread to $11.57.
Live cattle futures are experiencing a significant rally, with midday gains ranging from $3.02 to $4.30, underpinned by robust cash market activity. Recent cash trades in the South reached $224-225, with current bids reported at $228 in the South and $235 in the North. Feeder cattle futures mirror this strength, with contracts up $4.17 to $4.92, and the CME Feeder Cattle Index rose $2.04 to $303.52 as of June 3. This domestic price strength, however, contrasts with concerning developments in export markets. Beef export sales for the week ending May 29th fell to a 5-week low of 8,978 metric tons (MT), and actual shipments of 10,940 MT were the lowest for the calendar year. Furthermore, April's total beef shipments, at 237.2 million lbs, marked a 5-year low and a 7.3% decrease from March. Wholesale boxed beef prices presented a mixed picture: Choice boxes increased $2.39 to $367.55, while Select boxes declined $0.74 to $355.98, thereby widening the Choice/Select spread to $11.57. Concurrently, federally inspected cattle slaughter for Wednesday was 121,000 head, bringing the week-to-date total to 357,000 head, which is 7,466 head below the same week last year, suggesting tighter near-term cattle supplies.
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moderately positive
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0.45
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