Cattle Shrugging Off Fresh H5N1 News

Live cattle are trading with 37 to 60 cent gains across most contracts on Thursday. Cash trade this week has been quiet so far, with a few light trades of $192 in the north and $187 in the south, though nothing to establish a trend. The Thursday Fed Cattle Exchange from the Central Stockyards saw 120 head of the 600 listed selling in a range of $190-190.25, all out of IA. After the close on Wednesday, USDA reported another human case of H5N1, this time in Michigan connected with a dairy herd that had previously contracted the virus.

Feeder cattle are on the mixed side of things, with expiring May down a dime and other contracts up 10 to 60 cents. The CME Feeder Cattle index was up another 69 cents on May 21 to $248.44. The basis is firming ahead of contract expiration, with May futures now less than $2 premium to the cash market.

Export sales of beef totaled 21,522 MT in the week of 5/16, up 42.2% on the week and the third largest this calendar year. Of that total, 5,800 MT was headed to China. Shipments were at 17,300 MT, the highest this MY.

USDA’s Wholesale Boxed Beef prices were mixed in the Thursday morning report. Choice boxes were down $2.50 at $309.67, with Select $1.35 lower to $300.96. That narrowed the Chc/Sel spread to $8.71. USDA estimated FI cattle slaughter at 122,000 head for Wednesday, taking the weekly total to 364,000 head. That is up 1,000 head from last week but down 11,301 head below the same week last year. 

Jun 24 Live Cattle are at $184.600, up $0.425,

Aug 24 Live Cattle are at $182.050, up $0.375,

Oct 24 Live Cattle are at $185.025, up $0.375,

May 24 Feeder Cattle are at $250.275, down $0.100

Aug 24 Feeder Cattle are at $263.200, up $0.300

Sep 24 Feeder Cattle are at $264.250, up $0.500

On the date of publication, Alan Brugler 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.