Cattle Futures Continue Setting New Highs

Live cattle prices have backed off some into the midday quotes, but are still up 5 to 25 cents. June is trading 17 cents off it’s earlier high, which was another new LoC high at $161.32. Wednesday’s FCE auction saw $160-$161.50 bids but no sales for the 936 head listed as asks remained $163-$164. USDA reported some light cash activity in NE and the WCB, with trades from $160 to $164, but mostly near $161. Feeder cattle futures are up 62 to 92 cents for midday.The 2/20 CME Feeder Cattle Index was $182.59, up by 38 cents.   

USDA’s Ag Attache expects Mexico’s 2023 cattle herd to rise from 17.95m head to 18.25m head through the year. Total slaughter is expected to reach 6.99m head compared to USDA’s official 6.93m head estimate and 2022’s 6.78m head slaughter. The Attache had total beef output matching USDA’s official estimate at 2.25 MMT, from 2.18m last year. 

Pre-report Cattle on Feed estimates expect NASS to find 3.5% fewer head in 1,000+ capacity feedlots for Feb 1. The full range of estimates is from a 4.3% to 0.5% drop yr/yr. Placements are expected to be about 1.941 million head for January, or 2.9% lower yr/yr. Survey respondents expect marketings were 3.9% higher than last year, implying 1.842m head marketed in January. 

Wholesale Boxed Beef prices from Wednesday morning were $1.42 higher in Choice and $2.05 higher in Select. USDA estimated FI cattle slaughter for Tuesday at 127k head for a WTD pace of 231,000. That is 20k head lighter than last week and 4k head below the same week last year. 

Feb 23 Cattle  are at $164.900, up $0.150,

April 23 Cattle  are at $165.150, up $0.050,

Jun 23 Cattle  are at $161.150, up $0.275,

Cash Cattle Index was $160.310, from $160.31 last week

Mar 23 Feeder Cattle  are at $187.700, up $0.825

April 23 Feeder Cattle  are at $191.500, up $0.700