Cattle Futures Supported by $115-117 Cash Cattle

Live cattle futures were 5 to 32 higher on Friday, with June the firmest. The weekly change was modest at +22 1/2 cents. Nov feeder cattle dropped $2.15 over the week, with nearby futures closing Friday with gains of 10 to 22 cents. The 11/06 CME Feeder Cattle index was down 17 cents to $146.09. The WASDE indicated that US 4th quarter beef production would be 88 million lbs higher than October’s projection, forecasted to bring the yearly production to 27,036 million lbs (about 1% above last year). Wholesale boxed beef prices continue to increase. Choice boxes are up another $0.83 to $239.12, and select boxes gained $0.24 on Friday to close at $213.26. Cash cattle trades reported to the USDA were at $115 in TX, $114 for KS, and as high as $117 for the WCB on Friday. Nebraska also saw some Friday dressed sales of $181. CFTC reported that as of Tuesday, managed money was net long for live cattle futures by the largest amount since May. They were also net long feeder cattle futures (by 91 contracts), the first time managed money traders had been bullish as a group since April. The USDA estimated weekly cattle slaughter was 651,000 head.

--provided by Brugler Marketing & Management




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