Feeder Cattle Shows Positivity

Futures Market: Feeder cattle futures are showing a promising trend, trading higher with gains ranging from $1.35 to $2.25. This upward movement in futures prices is a significant indicator of the potential increase in future prices for feeder cattle, which can guide market decisions. The CME Feeder Cattle index was up 88 cents on May 20 to $247.75.

Cash Market:

• Cash trade has been relatively quiet this week, but a few light trades of $192 were reported in the North.
• USDA reported cash sales of $186 in the South and up to $190 in the North last week.

Market Sentiment: Despite future contracts being lower than in the current cash markets, the cattle industry has a strong undercurrent of optimism. Feeder offerings have been light to moderate, and when a good-sized sale is held, the market is incredibly active. Cattle feeders are paying more attention to tight feeder cattle supplies in the northern plains than the futures market. The warm weather and ample moisture have led to optimism among cattle feeders, as early-planted corn and soybeans are proliferating. Hay producers are ready to start forage harvesting if they can get across fields without rutting them up, as rain showers are forecast in many locations across the country this week.

Cattle on Feed Report: The Cattle on Feed report, a crucial indicator of market trends, shows April placements down 6.1% from last year, with April marketings up 9.8%. The May 1 on-feed inventory is down 0.8%, providing valuable insights for our market analysts.