Cattle Cement Weekly Drop on Friday Pullback

Front month fat cattle were at 50 cent losses for the week heading into the Friday session, and saw another 45 to 72 cent pullback for the weekend. That left Feb cattle at a $1.12 loss for the week following fresh contract highs set before the new year. USDA had Friday cash sales mostly at $157, which was $1 weaker in the North and $1 higher in the South. The full range of the week’s cash trade was $153 - $159. Feeder cattle also worked lower into the weekend, giving back $0.70 to $1.10 on the day. Jan feeders closed at a net $1 loss for the week. The CME Feeder Cattle Index was 14 cents higher on 1/05 to $180.46.    

CFTC’s weekly Commitment of Traders report showed more net new buying than net new selling from the spec traders during the week that ended 1/03. That left the group 3,011 contracts more net long to 82,762 contracts. Managed money funds were 344 contracts net long in feeder cattle as of 1/03 after a 16-wk consecutive net short. 

The USDA approved $9.6m in grants and loans to small meat packers, citing industry concentration with +85% of cattle slaughtered by just 4 companies in 2018. 

USDA’s weekly Export Sales report showed 6,947 MT of 2022 beef cancelations, and 12,461 MT of 2023 sales. Japan was the top buyer with 1/3 of the total. Japan was also the top destination for the week’s exports with 4.5k of the 11.7k MT total. The weekly data had a record 937,758 MT of beef exports for the year through 12/29.

Wholesale Boxed Beef prices were quoted higher in the Friday afternoon report, with Choice up by $1.36 to $282.99 and Select boxes at $259.34 after a $2.39 increase. USDA estimates FI cattle slaughter at 563k head through the first week of the new year. That compares to 619k head last year.  

Feb 23 Cattle  closed at $156.775, down $0.575,

Apr 23 Cattle  closed at $160.675, down $0.600,

Jun 23 Cattle  closed at $156.550, down $0.725,

Jan 23 Feeder Cattle  closed at $182.700, down $1.100

Mar 23 Feeder Cattle  closed at $185.650, down $0.900