Cattle Market Basis Not Normal, But Closer

After flashing triple digit gains at midday, cattle futures settled back for gains of $0.10 to $0.77. Feeder cattle futures also ceded some midday gains, but still closed 35 to 50 cents higher on the day. The CME Feeder Cattle index for July 8 was $133.69, up by $3.54. USDA reported some limited Thursday cash sales. Trades went $96 to $97 for live basis and $155 to $160 for dressed. From USDA’s weekly Export Sales report, 9,486 MT of beef was sold on the week ending July 2. That was an 8-week low and 56% below the same week last year. Of the week’s sales, 10.5% were to China, but Japan and South Korea were the top purchasers. Wholesale boxed beef prices were lower again on Thursday, widening the Chc/Sel spread to $8.76. Choice boxes were down 24 cents, and Select boxes dropped 69 cents. The week’s cattle slaughter is 474,000 head through Thursday. That trails last week by 10,000 head and is 2k head below the same week last year.

--- provided by Brugler Marketing & Management




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