Markets

Morning Cattle Market Report

June cattle closed moderately lower on the session yesterday, pushing to new lows on the day right into the 12:00 timeframe as outside market forces were thought to be a positive factor. However, many traders remained concerned over the rapid and severe sell-off in beef prices, which was thought to have helped to drive the market lower yesterday. The deferred contracts traded slightly higher due to strength in the grain markets and a more positive tone from outside market forces. The discount of June cattle to the cash market appears to be a limiting factor for the downside. Very high temperatures in Kansas, Oklahoma and Texas over the weekend may have slowed weight gains for feedlot cattle. The June cattle remains at a significant discount to last week's cash market, as many traders project a steady downtrend in cash cattle during the weeks ahead. Traders see cash at $113.00-$114.00 this week from $115.00 last week. With recent weakness in beef prices, the market is likely to continue to hold at a discount. The estimated cattle slaughter came in at 130,000 head yesterday which was a bit higher than expected and could suggest firm packer demand. This was up from 128,000 head last week and up from 129,000 head a year ago as this time. Boxed beef cutout values were up 19 cents at mid-session yesterday and closed 5 cents higher at $177.20. This was down from $181.79 the prior week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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