Cattle Market Grinds Lower into Options Expiration

Live cattle futures settled 67 to 150 lower to finish the week. June options expired, with exercise avoidance driving some of the trade. Feeder cattle futures were triple digits lower, down $2.02 to $2.75. The CME feeder cattle index was up 11 cents to $131.84 on June 6. Wholesale boxed beef prices were mixed. Choice boxes were up 6 cents at $222.31 with Select boxes 24 cents lower @ $206.92. Both were down 0.4% for the week. USDA estimated weekly FI cattle slaughter @ 662,000 head. That is 1,000 head larger than the same week last year. The Census export data for April was released, showing US beef exports of 80,856 metric tonnes. That was 3% smaller than April 2018. The great unwind continues. CFTC shows the managed money spec funds were net long 47,842 contracts as of June 4. That was down 17,637 for the week, and the smallest net long for that reporting group since last July.

JUN 19 Cattle closed at $106.925, down $0.675,

AUG 19 Cattle closed at $103.300, down $1.500,

OCT 19 Cattle closed at $104.500, down $1.250,

AUG 19 Feeder Cattle closed at $137.250, down $2.025

SEP 19 Feeder Cattle closed at $137.350, down $2.250

OCT 19 Feeder Cattle closed at $137.375, down $2.375

--provided by Brugler Marketing & Management

Market Commentary provided by:

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