Feeder Cattle Futures Market News and Commentary
Live cattle limited the week’s draw down with a triple digit gain of as much as 2% on Friday. Feb fats were up by $3.20 for the day, but still down by $3.40 for the week. There have been no Dec cattle deliveries issued yet, the Friday board rally now has Dec at a ~$1-6 discount to the cash. There were a few $166-$168 sales reported on Friday, but USDA maintained the bulk of sales for the week was near $171. Feeder cattle futures closed up by 2.3% on Friday, flipping the board to a net gain for the weekly move. Jan feeders closed 87 cents above last Friday. The CME Feeder Cattle Index for 12/06 was back down by $1.92 to $222.31.
CFTC’s weekly Commitment of Traders report had cattle spec traders taking closing longs for an 8.7k weaker net long of 27.7k contracts on 12/5. The spec traders had extended their net short in feeder cattle by 634 contracts to 1,247 via net new selling.
The WAOB left the 2023 beef output at 26.932 billion lbs, in today’s WASDE report, but raised... Read more