Week ending June 2

Week ending June 2

Surprisingly strong cash fed cattle prices and support from the futures market helped steers and heifers sell $2-$7/cwt. higher in the cash market last week, according to the Agricultural Marketing Service (AMS). There were instances of as much as $9-$11 higher.

Feeder Cattle futures closed an average of $8.45 higher week to week.

Cash fed cattle prices surged mostly $4-$7 higher on a live basis at mostly $134.00-$137.50/cwt. Dressed trade was up to $10 higher week to week at $215-$220.

Week to week, Live Cattle futures closed an average of $6.69 higher across the front half of the Board and then an average of $3.97 higher.

“It is difficult to determine at this time if this is a brief shock to the market due to being short-bought at the packer level or if retail demand is simply that strong,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, put it this way in his weekly market comments.

One certainty is that demand for Choice cattle continues to run ahead of supply, as evidenced by the historically high Choice-Select spread.

“Packer profitability has been better than expected and helped improve cash prices after sliding the past couple of weeks,” AMS analysts say. “Fewer cattle have been grading Choice and packers are willing to chase the market to get the higher quality-grading animals.”

Wholesale beef values on Friday were about even with the previous week leading up to Memorial Day: $245.24 for Choice boxed beef cutout; $218.06 for Select.

Reflecting on current market strength and producers with calves to market, Griffith says, “There is no guarantee prices will remain this strong, but there is also no information suggesting prices should decline.”

 

Friday to Friday Change*

 

Weekly Auction Receipts

Receipts Auction Change Direct Change Video/Internet Change Total Change
June 2 120,100 -43,400 43,900 +5,400 300 -9,100 164,300 -47,100

 

CME Feeder Index

CME Feeder Index June 1 Change
  $149.80 + $5.91

*Thursday-to Thursday for CME Feeder Index

 

Cash Stocker and Feeder

North Central

Steers-Cash June 2 Change 
600-700 lbs. $174.81 + 5.05
700-800 lbs. $163.15 + 4.58
800-900 lbs. $154.68 +  7.18

 

South Central

Steers-Cash June 2 Change
500-600 lbs. $174.25 + 2.76
600-700 lbs. $160.95 + 2.28
700-800 lbs. $152.97 + 4.92

 

Southeast

Steers-Cash June 2 Change 
400-500 lbs. $166.07 + 0.64
500-600 lbs. $159.48 +  2.33
600-700 lbs. $149.64 +  0.34

(AMS National Weekly Feeder & Stocker Cattle Summary)

 

Wholesale Beef Value

Boxed Beef  (p.m.) June 2 ($/cwt) Change
Choice $245.24 –  $0.36
Select $218.06 –  $0.39
Ch-Se Spread    $27.18 + $0.03

Futures

Feeder Cattle  June 2 Change
Aug $158.725 + $11.775
Sep $157.825 + $11.075
Oct $155.700 +  $9.925
Nov $152.650 +  $8.375
Jan ’18 $145.850 +  $7.400
Mar $142.175 +  $6.850
Apr $141.050 +   $6.175
Aug $140.075 +  $6.050

 

Live Cattle  June 2 Change
Jun $130.825 + $8.125
Aug $126.050 + $7.100
Oct $121.100 + $6.000
Dec $121.475 + $5.525
Feb ’18 $121.325 + $4.725
Apr $118.950 + $3.725
Jun $111.750 + $3.825
Aug $108.975 + $3.600

 

Corn futures June 2 Change
Jul $3.726 –  $0.016
Sep $3.806 –  $0.010
Dec $3.910 –  $0.014
Mar ’18 $4.006 + $0.004
May $4.070 –  $0.014
Jul $4.122 –  $0.010

 

Oil CME-WTI June 2 Change
Jul $47.66 –  $2.14
Aug $47.87 –  $2.18
Sep $48.05 –  $2.18
Oct $48.20 –  $2.16
Nov $48.37 –  $2.12
Dec $48.51 –  $2.08

Equities

Equity Indexes June 2 Change
Dow Industrial Average 21206.29 + 126.01
NASDAQ 6305.80 + 104.61
S&P 500 2439.07 +   23.25
Dollar (DXY)      96.66 –      0.74
2017-06-05T09:02:04-05:00

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