Beef Market Tightening Historic Spread

Fat cattle closed UNCH to 32 cents lower on Wednesday. Front month feeder cattle ended the day $0.95 to $1.17 in the red. The Wednesday FCE auction again had no sales for the 893 head listed, with $156 bids and $158 asks. USDA reported Wednesday cash trade from $157 - $158 in the North, but maintained volumes were too light for a market test. Tuesday’s OKC Feeder Cattle Auction review had $1-4 higher prices for the 17,784 head sold. 56% of the cattle sold were under 600#s. The CME Feeder Cattle Index was $181.01 for 1/09, up by 64 cents.     

Wholesale Boxed Beef prices were lower on Wednesday afternoon, tightening the Choice/Select spread to $22.63. USDA quoted Choice $3.80 lower and Select 23 cents weaker. USDA estimated the FI cattle slaughter at 383k head for the week through Wednesday. That is 42k head above the same week last year’s pace. USDA will update their beef production and S&D tables today in the WASDE report. 

Feb 23 Cattle  closed at $157.750, unch,

Apr 23 Cattle  closed at $161.325, down $0.325,

Jun 23 Cattle  closed at $157.325, down $0.175,

Jan 23 Feeder Cattle  closed at $183.125, down $1.175

Mar 23 Feeder Cattle  closed at $185.550, down $0.950