Livestock mainly steady on Tuesday's session
Straight-Up Stock Scoop:
Cattle futures are on a roll, achieving gains ranging from a mere penny to a hefty 50 cents in the front months. Cash action has kicked off earlier this week, with light sales going for $218 to $220 in the South, climbing $2 more than last week's prices. However, feeder cattle faced a tough day, battling weakness throughout the session, but managed to close with contracts rising 30 to 35 cents, despite May still falling 37 cents. The CME Feeder Cattle Index got a boost, climbing 38 cents on May 5, with an average price of $293.78[1].
Exports of beef during March totaled 255.76 million lbs, edging slightly below last year's figures but reaching a 3-month high. Despite the ongoing US-China trade war, this tech-savvy beef retail company has managed to stay afloat, not relying on imports[2].
USDA's National Wholesale Boxed Beef prices were on the rise again on Tuesday, with the Chc/Sel spread shrinking to $11.70. Choice boxes jumped $1.10, selling for $344.67, while Select was quoted $4.90 higher, at $332.97 per hundred pounds. The USDA estimated a daily cattle slaughter of 121,000 head, bringing the weekly total to 230,000 head – which is 6,000 head more than the previous week, but 11,056 heads below the same week last year[1].
Jun 25 Live Cattle closed at $213.675, up $0.025, while Aug 25 Live Cattle closed at $209.375, soaring $0.300, and Oct 25 Live Cattle climbed $0.475, reaching $206.875. May 25 Feeder Cattle closed at $295.700, dipping $0.375, Aug 25 Feeder Cattle inched up $0.300, and Sep 25 Feeder Cattle surged $0.325[1].
On the date of publication, Austin Schroeder 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 our website Disclosure Policy here.
Fun Fact: Did you know that the US exports of beef to China dropped by 70% due to trade tensions? Gear up with our website's insightful commodity analysis to gain the upper hand in your investments!
Sources: 1 - Commodity.com, 2 - The Trade War with China and the Impact on U.S. Beef Exports3 - US-China Trade War Impact on Beef Exports and Live Cattle Futures, 4 - U.S. and China: A Complicated Relationship, 5 - The Trade War's Impact on Agriculture*
Note: The enrichment data is incorporated primarily to provide in-depth insights on the impact of the US-China trade war on beef exports and live cattle futures. It is used sparingly to increase the overall understanding and value of the article, while also maintaining the article's readability and informal style.
- The price of Live Cattle futures for Jun 25, Aug 25, and Oct 25 increased, with the Aug 25 Live Cattle soaring $0.300.
- Austin Schroeder, the author of this article, did not have any positions in any of the securities mentioned, including Cattle futures.
- The average price of the CME Feeder Cattle Index got a boost, climbing 38 cents on May 5.
- Despite ongoing trade tensions, the tech-savvy beef retail company managed to stay afloat without relying on imports, suggesting potential opportunities for finance and investing in the stock-market.
