Live Cattle (P) Futures PricesWednesday, Feb 22nd, 2012

Live Cattle futures are expected to open lower on the monthly Cold Storage inventory and evening up ahead of the monthly Cattle on Feed report. The Cold Storage report on Wednesday afternoon showed an increase in total beef supplies from a year ago with supplies up 4% year over year and up 5% from last month. The Cattle on Feed report will be out Friday afternoon. Trade estimates average 102.5 for February 1 on Feed, 98.8 for January placements and 100.3 for January marketings. The February contract narrowed the price gap between Feb and April after making a new contract high. Feb cattle futures expire the 29th. Cash trade remains at a standstill so far this week. Cash cattle traded at $128-129 last Friday, $1 to $2 higher than the previous week. Feedlots are expecting more money with show lists tighter and wholesale beef higher. Wholesale prices were up significantly yesterday. Choice boxes were up $2.73 and Select was up $1.48 on the day. Box beef has rallied around $6.50 so far this week.