Cattle See Higher Week in Cash and Futures: So Do New Crop Corn and Soybeans

Cattle and hogs both end higher on Thursday, with grains mostly lower except HRW wheat.

Scott Varilek, Kooima Kooima Varilek, says live and feeder cattle futures closed strong on Thursday and for the week, pushed by cash.

Cash developed in Nebraska at $312 live, with dressed deals at $332 to $335, $4 to $7 higher than last week’s WA of $328.07.

Kansas &Texas at $210, $6 higher than the $204 WA last week.

Varilek says the fundamentals finally took hold and he thinks its possible for live cattle futures to retest the recent contract highs set in early April.

Feeder cattle futures were also sharply higher but only April made contract highs trying to align with the index before expiration, but again the deferreds are likely to retest the contract highs in his opinion.

The fireworks happened prior to the release of the USDA Cattle on Feed Report.

On feed came in at 98% versus the trade guess of 98.3%.

Placements were at 105%, which was above the estimate of 103.7%.

Marketings were at 101%, in line with the 100.7% guess.

Scott Varilek, Kooima Kooima Varilek, says slightly higher placements than expectations are not a concern to him.