Triple Digit Losses for Cattle Futures


Alan Brugler, Barchart

May 12, 2022

Live cattle futures ended the day $1.20 to $2.07 in the red. October fats were the weakest on the day. Feeder cattle went home with $1.27 to $3.50 losses. USDA confirmed cash sales on Thursday from $138 to $146, with the bulk near $140 in the South and near $144 in the North. The 5/11 CME Feeder Cattle Index was up another 37 cents to $156.61.


The monthly WASDE report showed USDA raised 2022 beef production by 132m lbs to 27.842 billion. That came mainly via a 175m increase to Q2, with Q3 up 90 and Q4 fading by 135m lbs. The preliminary look at Q1 2023 is for 6.51b lbs and a 2023 yearly total back down to just 25.95 billion a 7 year low.


USDA reported 28,362 MT of beef was sold for export during the week that ended 5/5. South Korea was the largest buyer with 12k MT. That was up 94% wk/wk as the largest weekly sale since the week of Jan 28 2021. The weekly FAS report also had 19,741 MT of beef export shipments from the week of 5/5, that left the YTD total at 328,774 MT. That is up by 2.89% yr/yr as a record setting pace.


USDA quoted Wholesale Boxed Beef prices as $257.20 for Choice and $244.36 cwt. for Select. That was a $2.12 gain and $2.18 increase respectively. Choice ribs were quoted at $399.47 cwt. in the PM repot. USDA estimates FI cattle slaughter at 495,000 head for the week through Friday, that is up 8k head wk/wk and 29k head yr/yr.


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