Feeder Cattle Futures Market News and Commentary
The cattle futures trade is mixed so far into the new week, as fats are gaining to the feeders pullback. Front month fat cattle gains are limited to 50 cents for midday. Feeders are down by 35 to 75 cents across the front month contracts. There have been no Dec cattle deliveries issued, with the oldest long listed as 7/15. There were a few $166-$168 sales reported on Friday, but USDA maintained the bulk of sales for the week was near $171. The CME Feeder Cattle Index was $220.04 on 12/07, another $2.22 weaker.
USDA’s AM Boxed Beef report had Choice back up by $2.44 and Select back up by $3.05. The weekly recap from USDA had beef production at 532.5 million lbs for the week, a 0.5% increase wk/wk but a 1.8% drop yr/yr. Cattle slaughter totaled 635k head, which matches last week but is 2% below the same week last year. YTD production and slaughter were reported at 25.034b lbs (-5.2% year/year) and 30.459m hd (-4.7%) respectively.
Dec 23 Cattle are at $165.800, up $0.350... Read more