June 24, 2011

 

US fed cattle bids remain stable

 

 

In spite of bearish outside market influences, the US fed cattle bids in Texas/Oklahoma and Kansas on Thursday (Jun 23) stayed at US$109 per cwt against US$115-117 offers, according to feedlot sources.

 

Bids for cattle in Nebraska held at US$112.50 on a live basis and US$180 dressed.

 

"Cattle futures came apart after getting hit by the stock market that fell on jobless claims numbers. I still think higher cash is in the cards because of beef sales and packers are still making money," a Kansas feedlot manager said.

 

In early trading, June CME live cattle <LCM1> down 1.425 cents per lb at 109.85 cents and August <LCQ1> down 1.550 cents at 110.150.

 

Last week in Texas/Oklahoma and Kansas cattle traded at US$108-109 and Nebraska cattle at US$111-112 on a live basis and US$178 on a dressed basis.

 

USDA reported weekly US beef exports at 23,100 tonnes, tied for the second largest year-to-date. Beef exports a week ago were 15,800 tonnes.

 

USDA reported choice beef up US$1.65 per cwt at US$177.97 and select up 86 cents at US$173.01 late on Wednesday (Jun 22).

 

Total beef sales on Wednesday 306 loads, compared with 433 a week earlier.

 

Average beef plant margin for Wednesday was estimated at positive US$53.15 per head compared with positive US$45.75 on Tuesday (Jun 21) and positive US$55.25 a week ago, according to HedgersEdge.com.

 

Beef stocks at the end of May hit a record 453.8 million pounds, which surpassed the previous 446.279 million on May 31, 2006, USDA said on Wednesday.

 

USDA estimated Wednesday's cattle slaughter at 129,000 head, 130,000 a week ago and 130,000 last year.