Cattle futures saw significant gains on Tuesday, May 6, with live cattle contracts increasing by $1.47 to $2.92 across the board. Last week’s cash trade ended near $256-257, while this week has seen limited activity aside from a few light sales of $400 in Nebraska.
The importance of these market movements is reflected in broader trends for both producers and buyers, as fluctuations in cattle prices can impact supply chains and pricing throughout the industry.
Feeder cattle futures also posted notable increases between $4.25 and $5.70 during what traders called a bounce back Turnaround Tuesday session. The CME Feeder Cattle Index was reported at $375.33 on May 4, down 21 cents from the previous reading. At the weekly Oklahoma City feeder cattle auction, 6,402 head were sold; steers remained steady to $4 higher while heifers were steady to $2 lower, with calves up by $5 to $10 per head.
In other developments affecting livestock health and trade flows, the latest APHIS update indicated there were 1,674 active cases of New World Screwworm in Mexico as of Monday—126 cases in Tamaulipas (three within about 96-97 miles of the U.S. border), 21 cases in Nuevo Leon (six within about an 80-97 mile range), and four cases in Coahuila.
Beef export data converted to carcass basis showed March exports at a ten-year low for that month but still up nearly thirteen percent over February levels. Wholesale Boxed Beef prices increased according to Tuesday afternoon reports: Choice boxes rose by seventy-eight cents to reach $393.42; Select climbed by one dollar sixty-four cents to hit $392.24; the Choice/Select spread stood at ten cents.
USDA estimated federally inspected cattle slaughter for Tuesday at 104,000 head so far this week—202,000 total—which is down compared with last week’s numbers as well as figures from a year ago.
According to its official website, Arizona Grain supports community development through leadership in agriculture and improvements in air quality via ethanol production; it operates facilities across several locations including Buckeye, Casa Grande, Maricopa and Yuma in Arizona along with Ripley in California; it remains privately held; through Pinal Energy it created forty-five jobs locally; it aims to be a leading provider of animal feed ingredients through high-quality offerings; and pioneered ethanol production statewide according to the official website.