Cattle Market Sees 5 Year Low in Beef Inventory

Live cattle futures saw 65 to 85 cent gains in the front months on Monday, following Friday’s USDA reports. Feeder cattle futures received some additional help from weaker corn, with the front months $2.20 to $2.625 higher. The monthly NASS Cold Storage report indicated another drop in frozen beef stocks to 394.525 million lbs on June 30. That was down 2.62% from May and 12.05% below a year ago to reach a 5-year low. That is the first time beef stocks have been under 400 million lbs since Oct 2014. The CME feeder cattle index was down 49 cents @ $138.16 on July 19. Wholesale boxed beef prices were mixed on Monday afternoon with Choice boxes down a dime per cwt at $213.32 and Select boxes 8 cents higher @ $189.59. USDA estimated Monday’s FI cattle slaughter at 114,000 head, which is 3,000 head below last week and 4,000 above the same Monday last year.

--provided by Brugler Marketing & Management

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