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Cattle Rally on Thursday, as Cash Strength Takes Control

Live cattle futures posted 65 cent to $2.15 gains on Thursday, with April $7.70 higher on the week. Cash trade got kicked off with strength on Thursday, with trade at $245 across the country, up $10 from last week. The Thursday morning Fed Cattle exchange showed no sales on the 1,016 head offered, with limited bids of $238-239.50. Feeder cattle futures were $2.15 to $2.77 cents in the green at the close, as May was up $11.45 this week. The CME Feeder Cattle Index was down 1 cent to $366.81 on April 1. The market is closed on Friday in observance of Good Friday.

The Thursday APHIS update showed 41 active cases of New World Screwworm in Mexico’s bordering state of Tamaulipas as of April 1, with 2 active cases in Nuevo Leon.

 

Beef export sales in the week of 3/26 showed a total of 11,886 MT booked, a 3-week high. South Korea was the top buyer of 3,800 MT, with 3,100 MT to Japan. Shipments in that week were 13,630 MT, back down from the previous week. The top destination was South Korea at 4,500 MT, with 2,900 MT headed to Japan. 

Census data converted to a carcass basis showed beef exports at 183.6 million pounds in February, a 10-year low for the month and 6% below January.

Wholesale Boxed Beef prices were lower in the Thursday afternoon report, with the Chc/Sel at $1.88. Choice boxes were down $4.84 to $389.58, while Select was $4.89 lower at $387.70. USDA estimated federally inspected cattle slaughter for Thursday at 105,000 head, with the weekly total at 429,000 head. That is up 17,000 head from last week but 39,632 head below the same week last year.  

Apr 26 Live Cattle  closed at $246.200, up $2.150,

Jun 26 Live Cattle  closed at $246.325, up $1.975,

Aug 26 Live Cattle  closed at $242.175, up $1.500,

Apr 26 Feeder Cattle  closed at $372.900, up $2.150,

May 26 Feeder Cattle  closed at $370.625, up $2.625,

Aug 26 Feeder Cattle  closed at $369.500, up $2.650,


On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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