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Cattle Posts Third Straight Gain in Anticipation of Inventory Data

June 23, 2016 at 23:46 by Brent Lantzy

Cattle futures are up for the third straight day on the Chicago Mercantile Exchange after posting their lowest close in 4 years on Monday, with the June contract touching $1.13725 and the August contract touching $1.09575 per pound.

June live cattle closed 1.4 cents (1.2%) higher at $1.16750 per pound. The August contract closed up 2.2 cents (2%) at $1.13850 per pound. August feeder cattle closed 2.2 cents (1.6%) higher at $1.42375 per pound.

The USDA’s May Livestock Slaughter report released today shows that US beef production was up 5% over last year, totaling 2.03 billion pounds, while slaughter totaled 2.51 million head, up 6% from May 2015. Traders are anticipating the June Cattle on Feed inventory report due to be released on Friday at 18:00 GMT. An Inside Futures article written by Paul Georgy of Allendale, Inc. estimates 102% on feed, 109.2% placed, and 105% marketed.

Midday choice beef cutout price for June 23 was down $1.62 from yesterday at $215.46 per cwt, while the select cuts were down by $0.01 to $198.34 per cwt, according to data provided by the USDA.

The CME Feeder Index price for the 7 days ending June 22 is $140.86, down 0.75 cents from the June 21 level of $141.61.

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