Feeder Cattle Futures Market News and Commentary
Following Friday’s USDA reports, cattle futures climbed triple digits to close near the highs. October fats led the way with a $2.05 gain. Feeder cattle also gained triple digits, closing the session with $1.60 to $2.30 gains. The 7/22 CME Feeder Cattle Index was $152.03, up another 64 cents.
The reasoning for the rally was behind the Friday reports. NASS reported 11.29m head of cattle in 1,000+ capacity lots on July 1. That was a 1.29% drop from July 2020. Getting there, NASS saw 2.022m of June’s 11.699 m head marketed, against 1.67m placements. The bi-annual inventory count showed the beef cow herd was 650k head lighter than 2020 with 100k fewer replacement heifers – at 31.4m head and 4.3m head respectively as of 7/1.
Wholesale Boxed Beef prices were higher on Monday morning, widening the spread back to $17.30. Choice boxes were up by 98 cents to $267.61, with Choice ribs at $414.96. Select boxes were 37 cents higher, with ribs to $351.86 cwt. Last week’s USDA estimat... Read more