Cattle Current Daily—May 22, 2024

Cattle Current Daily—May 22, 2024

Cattle futures closed higher Tuesday, supported by steady to stronger wholesale beef values.

Heading into the close and before settlement, Live Cattle futures were an average of $1.01 higher. Feeder Cattle were an average of $1.62 higher.

Negotiated cash fed cattle trade ranged from a standstill in the Southern Plains to slow on light demand in the western Corn Belt through Tuesday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were some early FOB live trades in the western Corn Belt at $192/cwt.

Last week, FOB live prices were $186/cwt. in the Southern Plains, $190 in Nebraska and $190 in the western Corn Belt with a few up to $191. Dressed delivered prices were $298 in Nebraska and mostly $300 in the western Corn Belt with a few up to $306.

Choice boxed beef cutout value was 32¢ higher Tuesday afternoon at $313.02/cwt. Select was $1.52 higher at $300.87/cwt.

Heading into the close, Corn futures were 1¢ to 2¢ lower through Jly ’25 on planting pressure. Soybean futures were 10¢ to 12¢ lower through Jly ’25.

******************************

Major U.S. financial indices closed little changed Tuesday but to the upside.

The Dow Jones Industrial Average closed 66 points higher. The S&P 500 closed 13 points higher. The NASDAQ was up 37 points.

Heading into the close West Texas Intermediate Crude Oil futures on the CME were 78¢ to $1.08 lower through the front six contracts.

******************************

Heading into the monthly Cattle on Feed report, analysts expect, on average, April feedlot placements to be about 5% less year over year, April marketings to be about 10% more and the May 1 on-feed number to be approximately 1% less.

“There is a clear understanding of the coming long-term reductions in numbers and beef supplies. This week’s Cattle on Feed report will be interesting in how placements confirm this perspective,” says Stephen Koontz, agricultural economist at Colorado State University, in the latest issue of In the Cattle Markets. “Has the persistent dry weather and poor pasture led to more placements and less heifer holding, thereby delaying the shortfalls but exacerbating their future magnitude?”

While many cast their gaze on placements, marketings may be more telling this time. Even though there were a couple of extra days of production in April compared to last year, packers have been dialing back production to boost wholesale beef values.

Based on federally inspected (FI) fed cattle slaughter data, Koontz does not expect to see a strong April marketing number in this week’s Cattle on Feed report.

“Last month’s Cattle on Feed revealed a large number of cattle on-feed over 150 days, and there will be some reduction but not strong,” Koontz believes. “And FI steer and heifer carcass weights continue to impress. Weights have essentially held steady the last eight to nine weeks. Steers hover above 920 pounds and heifer weights are about 850 pounds. This is another 40 pounds of beef per animal given the normal seasonal decline in weights that should be observed. This is a substantial increase in beef tonnage.”

2024-05-21T18:47:08-06:00

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.