Cattle Futures Still Steeply Discounted to Cash

Wednesday trading in the live cattle futures added $0.42 to $1.40 to the front months. Feeder cattle futures were 55 cents to $0.72 higher. The May 26 Feeder Cattle Index from CME was 33 cents lower to $126.11. The weekly FCE online cattle auction resulted in no sales. Packers passed on asks of mostly $120, and on $115 for a pen of TX heifers. Wednesday cash sales outside of the FCE were reported at $120 in the South, and $178 to $190 for Dressed. USDA mentioned the bulk of dressed sales moved from $180 last week to $190 for this week so far. Wholesale boxed beef prices were lower this afternoon widening the Choice/Select spread to $27.57. Choice boxes were $7.72 lower and Select boxes were down by $9.82. Cattle slaughter for the shortened week was at 220,000 head through Wednesday, which compares to 248,000 from the same last year.

--- provided by Brugler Marketing & Management

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