Cattle Market Responds to Corn Moves

The midday corn rally has fats working higher and feeders in the red to absorb the feed cost. Through midday the fat cattle gains are limited to 37 cents. Feeders are down triple digits with $1.02 to $1.42. Confirmed cash trades were mostly near $143 in the North ($230 dressed) and $141 in the South last week. The CME Feeder Cattle Index was $181.24 after a 93 cent bounce. 

The monthly WASDE report led to a net 15m lb increase for 2022 beef production – as Q3 was down 25 and Q4 was lifted 40m lbs. 2022’s full year beef output is estimated at 28.006 billion lbs. Looking to 2023, USDA raised Q1 by 150m lbs to 6.695 billion for a full year total of 26.335 billion lbs. 

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. 

Oct22 Cattle  are at $145.825, up $0.150,

Dec 22 Cattle  are at $151.350, up $0.375,

Feb 23 Cattle  are at $155.600, up $0.250,

Sep 22 Feeder Cattle  are at $181.925, down $1.075

Oct22 Feeder Cattle  are at $184.275, down $1.300