Live cattle futures rose between $1.20 and $2.05 across the board on Friday, with June contracts up $5 for the week, as the cash market played a key role, according to a May 16 report. Cash trade in the South was mostly at $260 to $265 this week, while northern dressed trade ranged from $408 to $415 and live sales reached up to $265.
This movement is significant for producers and traders because it reflects both domestic demand and international factors impacting beef markets. China renewed expired export licenses for more than 400 United States beef plants after letting them lapse earlier.
Feeder cattle futures also saw gains of $1.10 to $4.70 at Friday’s close, although August contracts ended the week down by $2.77. The CME Feeder Cattle Index dropped by $3.14 to reach $370.09 on May 14.
Data from the Commodity Futures Trading Commission showed managed money reduced net long positions in live cattle futures and options by 11,079 contracts as of Tuesday, mainly through long liquidation, bringing holdings down to 130,886 contracts overall. In feeder cattle futures and options, speculators increased short positions while cutting longs—resulting in a decrease of net longs by 3,539 contracts to total 15,186.
Wholesale boxed beef prices were stronger on Friday afternoon; Choice boxes increased by $1.80 to reach $389.25 while Select boxes rose by 25 cents to hit $386.25 per hundredweight—the Choice/Select spread stood at zero dollars for this report period.
The United States Department of Agriculture estimated federally inspected cattle slaughter for this week at 53,500 head—up by about 8,000 head compared with last week but down over 31,000 head versus the same period last year.
Final closing prices included Jun Live Cattle at $253.900 (up $1.825), Aug Live Cattle at $247.925 (up $1.775), Oct Live Cattle at $239.875 (up $1.800), May Feeder Cattle at $368.675 (up $1.100), Aug Feeder Cattle at $361.450 (up$3 .450), and Sep Feeder Cattle at$359 .175 (up$3 .950).
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