Cattle Gain on Friday

Nearby live cattle futures closed Friday $0.70 to $1.75 in the black. October led the way higher into the Labor Day holiday, after becoming the new lead month contract. Friday feeder cattle closed the day $0.60 to $0.72 higher in the front months. October fed cattle closed a net $1.50 higher through the week, and Sep feeders were $1.67 lower Friday to Friday. USDA cited the bulk cash prices for the week as near $141 in the South and near $143-$144 in the North. The CME Feeder Cattle Index for 9/1 was $1.11 weaker to $181.25.

Weekly CoT data showed live cattle spec traders were 5,813 contracts less net long through the week that ended 8/30. That left the group 60,743 contracts net long. Managed money firms had expanded their net short in feeder cattle from 535 contracts to a net 1,064 short position. 

Wholesale Boxed Beef prices firmed higher on Friday with a $1.35 bounce in Choice and a $1.99 stronger Select. USDA estimated the FI cattle slaughter for the week through Saturday at 638k head. That was down 40,000 wk/wk but still 17,000 head above the same week last year. The YTD slaughter was reported at 22.745m head, 1.3% ahead of last year’s pace. 

Oct 22 Cattle  closed at $144.550, up $1.750,

Dec 22 Cattle  closed at $150.250, up $1.675,

Feb 23 Cattle  closed at $154.375, up $1.225,

Sep 22 Feeder Cattle  closed at $183.875, up $0.725

Oct 22 Feeder Cattle  closed at $184.950, up $0.600