Live Cattle Futures have come short of expectations throughout the month of May. While the May fed cattle basis tends to be strong compared to June contracts, this month’s basis has been roughly $10/cwt. The fed cattle market remained rangebound, with the volume of trade ranging from $140/cwt. in the south to $146/cwt. in the north. The downtrends evident aren’t invoking enthusiasm to fed cattle sellers.
Cutout prices also continue to decline through the end of last week, though consumer demand has likely not waivered but instead reflects inflationary pressures consumers face at the grocery store. Throughout the last decade, fed cattle prices declined 6% from the first week of May through the end of June. Higher feed costs and challenging inputs could continue under-performing price trends.
Cattle Futures Fall Short in May
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