Feeder Cattle on the Move
Not much happening in the grains on Wednesdays but more positive momentum for beef. From her home trading office in Chicago, here is Virginia McGathey.
McGathey… “Cattle gapped limit up yet again. Another limit move we have here. It seems that normally when cash prices have the divergence from the features, we're talking about maybe $2 or $3. But there's a $20 difference with the April contract, and that really has the market on the move. Also, there's a possibility of perhaps Cargill is going to shut down one of their plants, and I think that that might put a little bit of a squeeze on the market. Now, feeders are also following on the way up and they have an expanded limit up, so they are really on the move.”
Chicago May Wheat futures yesterday closed down a penny to $5.48 ¼.
Kansas City Hard Red Winter Wheat up $0.04 ½ to $4.78.
May Corn closed down a penny and a half to $3.30.
Not much changing in Portland Soft white wheat of ordinary protein still $6.05 to $6.10.
Club Wheat of Ordinary Protein still $6.05 to $7.85.
Dark Northern Spring wheat up $0.05 ½ ranging from $6.65 to $7 for 14% protein.
Live Cattle futures did come off that limit move to close up $1.87 ½ on the June board to $86.67 ½. Feeder Cattle though closed near the top of thed daily high for the May futures up $5.57 ½ to $119.37 ½.
Class III milk erased the previous day’s gains to drop $0.75 back down to $11.83.