Feeder Cattle Futures PricesTuesday, May 22nd, 2012

Cattle futures are trading higher after backing off from resistance yesterday at the 50% support resistance point. Wholesale beef prices are mixed this morning after the Choice hit the highest level since early March yesterday. Choice is down $0.08 and Select is up $0.68 putting the spread at $7.35. Estimated Monday slaughter was 126,000 head, down from 127K last week and 131K a year ago. The cattle crush spreads are still telling feedlots quite loudly “don’t do it”. The crush spread for March 2013 placements is offering feedlots the opportunity to Cattle futures ended the session higher maintaining the gap left last Friday on the June contract. Wholesale beef prices closed mixed this afternoon. Choice was down $0.31 and Select was up $0.57 leaving the spread at $7.24. Estimated Tuesday slaughter was 126,000 head, same as last week and down 4,000 head from a year ago. The cattle crush spreads improved today but are still way below break even. Cash trade is basically at a standstill with a minimal number of head trading at steady money with last week. The afternoon Cold Storage report showed total beef supplies at 517,528,000 pounds, up significantly from a year ago when April supplies were at 443,151,000 pounds. Frozen beef supplies are at the highest level seen the last 12 years and significantly out pacing previous years. Beef and veal exports for the first three months of 2012 (official census data) totaled 558.4 million pounds down from last year’s 633.27 million pounds. Total beef exports for 2011 hit a record of 2,788 million pounds.

Jun 12 Cattle closed at $119.350, up $0.550,
Aug 12 Cattle closed at $121.275, up $0.475,
Oct 12 Cattle closed at $125.700, up $0.350,
May 12 Feeder Cattle closed at $152.525, up $0.650
Aug 12 Feeder Cattle closed at $160.125, up $1.025
Sep 12 Feeder Cattle closed at $161.175, up $1.100