Cattle Basis Positive after 2nd Week of Sep

Cattle futures settled 85 cents to $1.32 in the black on Friday. For October, that flipped the contract to a net gain for the week, closing $1.12 above last Friday. Confirmed cash trades picked up volume on Thursday and Friday after a nonexistent market early in the short week. USDA had the bulk of trade near $143 in the North ($230 dressed) and $141 in the South. Feeder cattle futures closed with $0.67 to $1.17 gains on Friday. Sep futures were still a net 87 cents weaker from Friday to Friday. The CME Feeder Cattle Index was $181.24 after a 93 cent bounce. 

Weekly CoT data showed managed money firms were adding longs through the week that ended 9/6. That left the group 1,143 contracts more net long at 61,886 contracts. In feeder cattle, the funds had flipped back to net long after 2k shorts were closed. That left the group 1,474 contracts net long after a week of being net short. 

Wholesale Boxed Beef prices from Friday morning was 77 cents lower in Choice and was 2 cents weaker in Select. USDA estimated the week’s FI cattle slaughter as 604k head for the week after Labor Day. That is 25k head above the same week last year keeping YTD 1.3% above last year’s pace. 

Oct 22 Cattle  closed at $145.675, up $1.300,

Dec 22 Cattle  closed at $150.975, up $1.325,

Feb 23 Cattle  closed at $155.350, up $1.075,

Sep 22 Feeder Cattle  closed at $183.000, up $0.675

Oct 22 Feeder Cattle  closed at $185.575, up $1.175