Summer Demand For Cattle

This is Matt Rice with the Market Line Report for May 6th. Cattle trading higher as we stride into summer, building more demand for both live and feeders. Oliver Sloup explains more from the floor of the CME in Chicago, with Bubba Trader.com.

Sloup "Seeing some bargain buyers step into the market, as we have seen throughout the week in the cattle market. I want to focus specifically, to start on that live cattle contract, looking at the June contract, that's where a lot of the trade volumes going to be. We weren't able to take out last week's lows in the contracts lows and that really put sellers into kind of a jam. You start to see them cover, which invited new buyers into the market once we got out of technical resistance at towards that 118 level."

Chicago May Wheat prices were dn 7 ½, from yesterday, at 452 ¾. May corn ended the day dn 1 ½, at 372. Portland prices for soft white wheat of 10 ½ % protein for May were dn 3-unch, ranging from 5-33 ¼ to 5-75. Hard Red Winter wheat with 11 ½ % protein, prices for May were dn 3-5, ranging from 5-25 ¾ to 5-37 ¾. DNS wheat with 14 % protein, prices for May were dn 4 ¼- 9 ¼, ranging from 6-20 ¾ to 6-31 ¾. June Live Cattle closed the day up $2.17 ½, at 119.57 ½. May Feeder cattle were up $3.02 ½, at 147.90. May class III milk was dn 5 cents at, 12-88.