Daily-May 9

Daily-May 9

As suspected, volatility continued at the beginning of the week as short covering and the gaping discount to cash fed cattle spurred Cattle futures sharply higher on Monday…following the late-week crash on Thursday and Friday.

Except for 52¢ lower in spot Jun, Live Cattle futures closed an average of $2.22 higher with a range of $1.87 to $2.60 higher.

Except for $1.65 higher at the very back, Feeder Cattle futures closed an average of $4.67 higher with a range of $3.22 to $5.77 higher.

Corn futures closed mostly 3¢-4¢ lower.

There was no cash fed cattle trade reported on Monday. Depending on who you talk to, there seems to be plenty of expectation for steady money this week, if not lower. In the mean time, packers are certainly putting the pressure on meat buyers. Choice boxed beef cutout value was $2.57 higher Monday afternoon at $241.44. Select was $3.32 higher at $228.89.

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The weekend election of a Euro-friendly president in France helped major U.S. financial indices retain gains from the end of the week. The Dow Jones Industrial Average closed 5 points higher. The S&P 500 closed fractionally higher. The NASDAQ closed 1 point higher.

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The fundamentals are there but are short term and will not likely persist through the summer,” says Stephen Koontz, agricultural economist at Colorado State University, in a recent issue of In the Cattle Markets.

Koontz current pricing opportunities will evaporate before cow-calf producers have the chance to market the current calf crop on video auctions this summer. So, he recommends establishing price floor protection now or as soon as the rally slows.

“As soon as beef supplies in the marketing pipeline are replenished, the market will likely soften and become focused on larger summer supplies,” Koontz says.

2017-05-30T13:39:36-05:00

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