AgriCharts Market Commentary

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Cattle

Live cattle futures finished with gains of 32.5 cents to $1 on Friday. Ahead of next Friday’s June contract expiration, cash trade fell a considerable amount this week to $119-$123. Feeder cattle futures were up $1.25 to $2.075 to end the week. The CME feeder cattle index was down $1.09 on June 22 at $147.09. Wholesale beef prices were lower in the afternoon report, with choice boxes sharply lower, down $3.13 at $239.75. Select was down 20 cents, with an average of $216.72 Estimated FI cattle slaughter through Saturday is 632,000 head, 4,000 head more than last week and 24,000 head more than the same week a year ago. This afternoon, the USDA authorized the grazing usage of CRP ground in the Dakotas and Montana, for D2 and D3 drought stricken areas. After the conclusion of the trading session the USDA Cattle on Feed report showed June 1 COF at 11.096 million head, up 2.7% from June 2016. May placements were 12.18% larger the last year at 2.119 million head, with 1.951 million head being marketed in May, up 8.75% from the year prior.

Jun 17 Cattle closed at $119.200, up $0.575,

Aug 17 Cattle closed at $115.275, up $1.000,

Oct 17 Cattle closed at $112.425, up $0.425,

Aug 17 Feeder Cattle closed at $144.950, up $1.500

Sep 17 Feeder Cattle closed at $144.400, up $1.425

Oct 17 Feeder Cattle closed at $142.700, up $1.250

Cattle

Live cattle futures are mostly 2.5 to 22.5 cents in the red ahead of the USDA COF report. Feeder cattle futures, on the contrary are up 22.5 to 47.5 cent in the nearby contracts. The CME feeder cattle index was up 11 cents on June 21 at $148.18. Wholesale beef prices were mixed in the morning report, with choice boxes sharply lower, down $3.38 at $239.50. Select was up 9 cents, with an average of $217.01. Cash trade is likely done for the week as sales ranged from $119 to $123. Estimated FI cattle slaughter through Thursday was 465,000 head, 2,000 head fewer than last week and 17,000 head more than the same week a year ago. Total beef export commitments are 12.1% larger than last year at this point. In a press release, the USDA stated they had been inspecting every load from Brazil since March and have rejected nearly 11% of the 17.27 million pounds. That is a small number vs. typical US annual imports of 3 billion pounds. The USDA Cold Storage report last night showed May beef stocks down 10.57% from May 2016 and 9.94% lower than April at 412.872 million pounds.

Jun 17 Cattle are at $118.600, down $0.025,

Aug 17 Cattle are at $114.150, down $0.125,

Oct 17 Cattle are at $111.775, down $0.225,

Aug 17 Feeder Cattle are at $143.925, up $0.475

Sep 17 Feeder Cattle are at $143.350, up $0.375

Oct 17 Feeder Cattle are at $141.675, up $0.225

Cattle

Live cattle futures settled 57.5 cents to $1.15 lower on Thursday. Feeder cattle futures were down 35 cents to $1.20. The CME feeder cattle index was up 11 cents on June 21 at $148.18. Wholesale beef prices were sharply lower in the afternoon report, with choice boxes $2.54 lower at $242.88. Select was down $1.98, with an average of $216.92. After trading $121-$123 yesterday, a few cash cattle sales of $120 were reported in KS on Thursday. Estimated FI cattle slaughter through Thursday was 465,000 head, 2,000 head fewer than last week and 17,000 head more than the same week a year ago. Total beef export commitments are 12.1% larger than last year at this point. USDA has been reinspecting all beef shipments from Brazil since March and is prohibiting those admittedly small imports right now. The USDA Cold Storage report last night showed May stocks down 10.57% from May 2016 and 9.94% lower than April at 412.872 million pounds.

Cattle

Live cattle futures settled 57.5 cents to $1.15 lower on Thursday. Feeder cattle futures were down 35 cents to $1.20. The CME feeder cattle index was up 11 cents on June 21 at $148.18. Wholesale beef prices were sharply lower in the afternoon report, with choice boxes $2.54 lower at $242.88. Select was down $1.98, with an average of $216.92. After trading $121-$123 yesterday, a few sales of $120 were reported in KS today. Estimated FI cattle slaughter through Thursday was 465,000 head, 2,000 head fewer than last week and 17,000 head more than the same week a year ago. Beef export sales rose 95.6% over last week to 16,647 MT, which is an increase of 2.8% above last year. Shipments for that week ran shy of the previous week at 13,734 MT. Beef exported to the US from 5 Brazilian plants was suspended on Wednesday, as food quality and safety is in question. USDA has been reinspecting all beef shipments from Brazil since March. The USDA Cold Storage report showed May stocks down 10.57% from May 2016 and 9.94% lower than April at 412.872 million pounds.

Jun 17 Cattle closed at $118.625, down $0.875,

Aug 17 Cattle closed at $114.275, down $1.075,

Oct 17 Cattle closed at $112.000, down $1.025,

Aug 17 Feeder Cattle closed at $143.450, down $1.200

Sep 17 Feeder Cattle closed at $142.975, down $1.075

Oct 17 Feeder Cattle closed at $141.450, down $0.875

Cattle

Live cattle futures are trading 82.5 cents to $1.60 in the red on Thursday. Feeder cattle futures are down $1.05 to $2.00 in most contracts. The CME feeder cattle index was down 17 cents on June 20 at $148.07. Wholesale beef prices were lower in the Thursday morning report, with choice boxes 95 cents lower at $244.47. Select was down $1, with an average of $217.90. After trading $121-$123 yesterday, cash bids are down today to $119-$120 in the South and $122 in NE. Estimated FI cattle slaughter through Wednesday was 349,000 head, 1,000 head fewer than last week and 15,000 head more than the same week a year ago. Beef export sales rose 95.6% over last week to 16,647 MT, which is an increase of 2.8% above last year. Beef exported to the US from 5 Brazilian plants was suspended on Wednesday, as food quality and safety is in question. USDA has been reinspecting all beef shipments from Brazil since March.

Jun 17 Cattle are at $118.675, down $0.825,

Aug 17 Cattle are at $113.750, down $1.600,

Oct 17 Cattle are at $111.575, down $1.450,

Aug 17 Feeder Cattle are at $142.675, down $1.975

Sep 17 Feeder Cattle are at $142.050, down $2.000

Oct 17 Feeder Cattle are at $140.350, down $1.975


Market Commentary provided by:

Brugler Marketing & Management LLC
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