Live cattle futures are trading higher, with gains ranging from 15 to 55 cents, while feeder cattle futures also saw increases of 45 to 70 cents in the front months. Boxed beef prices are up, with the Choice/Select spread widening to $15.32, as Choice boxes increased $5.63 to $360.44 per hundred pounds. Monday's federally inspected cattle slaughter was estimated at 115,000 head, up from the previous week but slightly below last year's figures.
Live cattle futures registered gains of 15 to 55 cents on Tuesday, with the June 25 contract, for instance, increasing $0.525 to $213.500, while feeder cattle futures also saw front-month advances of 45 to 70 cents. This futures market strength contrasts with a $1.97 decline in the CME Feeder Cattle Index to $298.86 on May 16 and reported cash prices at the OKC feeder cattle auction being $5-10 lower. The USDA's National Wholesale Boxed Beef report indicated a strengthening market, with Choice boxes up $5.63 to $360.44 and Select boxes rising $1.01 to $344.12, consequently widening the Choice/Select spread to $15.32. Federally inspected cattle slaughter on Monday was estimated at 115,000 head, representing a 16,000 head increase from the prior week but a 3,333 head decrease compared to the same Monday last year, implying a tighter year-over-year supply. Concurrently, U.S. pasture conditions improved, with 40% rated good/excellent, a 4% weekly increase, which could impact longer-term feeder cattle input costs.
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