Feeders Led Tuesday Rally

Feeder cattle futures rallied triple digits on Tuesday, taking the November contract to a new high for October. Month to date, Nov feeders are up $3.20, but are still only a third of the way back to the August high. Live cattle futures also traded higher on the day, going home on 57 to 60 cent gains. Tuesday’s FCE auction had no bids for the 1,301 head listed, asks were mainly $146 - $147. USDA confirmed limited WCB sales at $150, with no trade in NE or the Southern Plains. USDA reported prices were steady to $3 higher in the OKC Auction Review – with 51% of the offered feeders as steers and 60% under 600lbs. The CME Feeder Cattle Index was down by 81 cents on 10/17 to $172.27.  

Wholesale Boxed Beef prices were stronger in the PM report. USDA had Choice up $2.64 to $250.78 and Select $1.67 stronger at $221.28. The ribs were shown $419.23 cwt. in Choice and $314.58 cwt. in Select. USDA estimated FI cattle slaughter at 128k head for Tuesday, setting the week’s pace at 254,000 head. That is up from 239k head during the same week last year.  

Oct 22 Cattle  closed at $148.475, up $0.600,

Dec 22 Cattle  closed at $149.775, up $0.575,

Feb 23 Cattle  closed at $152.775, up $0.575,

Oct 22 Feeder Cattle  closed at $174.825, up $0.075

Nov 22 Feeder Cattle  closed at $177.825, up $1.425