New Week for Cattle Market

The in-delivery October cattle contract closed the day with a 50 cent gain in a bid to stay close to cash trade. The other front months settled down by 15 to 95 cents. That tightened the deferred months’ premium, with April now a $7 premium to December. USDA reported some Friday catch up sales of as high as $150 in the north, though maintained the bulk of Northern action for the week was $146-$148 and $145 in the South. The feeder cattle market closed $0.92 to $1.32 lower on board on Friday. The CME Feeder Cattle Index for 10/12 was $174.03 down by $1.01. 

The weekly Commitment of Traders report showed long liquidation from cattle spec traders. Through the week that ended 10/8, managed money closed 9.5k longs and 1.6k shorts for a net long of 35,062 contracts. That was the groups weakest net long in cattle since July. Spec traders added less than 300 contracts to both sides of feeder cattle during the week, on net extending their net short by 68 contracts to 9,796. That is their strongest net short presence since record keeping began back in June of ’06. 

Accumulated beef exports remain at record pace with 735,908 MT shipped through the first 40 weeks – weekly USDA data. 

Wholesale Boxed Beef prices were higher in Friday’s PM update with a 45 cent boost to Choice and a $1.08 increase in Select. USDA estimated FI cattle slaughter for the week through Saturday as 660,000 head. That is 4k head lighter wk/wk but is up 17k head from the same week last year. The YTD slaughter is running 1.6% ahead of last year with 26.691m head harvested. 

Oct 22 Cattle  closed at $146.950, up $0.500,

Dec 22 Cattle  closed at $147.775, down $0.150,

Feb 23 Cattle  closed at $151.100, down $0.600,

Oct 22 Feeder Cattle  closed at $173.800, down $0.950

Nov 22 Feeder Cattle  closed at $174.775, down $1.325