EHedger Livestock Commentary 4/17/09
18.04.09
Live cattle closed mostly lower on the day. Volume was light as futures waited to see this afternoon’s cattle on feed report. The report was neutral as the numbers were inline with the pre-report estimates. Once again cattle on feed numbers are tight and this is showing in our weekly slaughter numbers being below year ago levels. Cash cattle traded today in Texas, Oklahoma, Kansas, and Colorado at $88 live. Yesterday cattle were trading $89-90 live and $142-145 dressed. The slightly lower trade from yesterday was one of the reasons cattle sold off today. For the week June cattle finished 0.075 lower, yet cash cattle and beef prices were higher for the week. This should bring a positive tone next week. Futures will have a difficult time selling off with the $3.50 discount to $88 cash prices. Historically, the 3-year basis for June is $2-2.50 discount to cash. However, be mindful that packers may have been active this week in order
Source: AgWeb