Feeders Flood The Market

Feeders Flood The Market

Matt Rice
Matt Rice
This is Matt Rice with the Market Line Report for May 24th. After Fridays Feeder Cattle report came in, it was clear to producers that feeder numbers are strong, maybe too strong. Feeder cattle testing the limit down moving average as the market tries to weather this flood of beef. Oliver Sloup explains in more detail, from the floor of the CME in Chicago.

Horwitz "Cattle markets reacting to the very negative cattle feeder report that came out Friday. Where the placements numbers were significantly above trade expectations and significantly above a year ago levels. The rest of the report was considered relatively neutral, but to have all that cattle come on feed was really a big shock to the system and has processed a rather extreme reaction in Chicago here today."

Chicago July Wheat prices were dn 5 ¾, at 463. July corn ended the day up 3 ¼, at 398. Portland prices for soft white wheat of 10 ½ % protein for June were dn 14 - unch, ranging from 5-22 to 5-45. Hard Red Winter wheat with 11 ½ % protein, prices for May were dn 2, ranging from 5-27 to 5-29. DNS wheat with 14 % protein, prices for May were dn 4, ranging from 6-13 ¾ to 6-28 ¾. June Live Cattle closed the day dn $2.90 at 118.05. May Feeder cattle were dn $1.62 ½, at 146.87 ½. May class III milk was up a penny at, 12-83.

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