Cattle futures closed lower again on Tuesday with Feeder Cattle leading the way. There seems to be a growing belief that holders of non-commercial long positions will begin unwinding them within the next couple of weeks—arguably they’ve already started—as wholesale beef values and cash fed cattle prices swoon seasonally lower. News that JBS S.A. plans to sell JBS Five Rivers Cattle Feeding added uncertainty (see below).
Other than 35¢ higher in spot Jun, Live Cattle futures closed an average of 18¢ lower.
Feeder Cattle futures closed an average of $1.35 lower (95¢ to $2.67 lower).
Choice boxed beef cutout value was $2.47 lower Tuesday afternoon at $246.99/cwt. Select was $1.48 lower at $219.88.