Cattle Extend Weakness at Midweek

Live cattle are continuing the weak streak with contracts 50 cents to $1.42 lower at midday. Cash trade across the country has been reported at $164 so far this week, down $1. Wednesday morning’s FCE online auction showed no sales on the 1,002 head listed, with bids running $162, down $1 from Tuesday, and offers of $164-165.50. Feeder cattle are again the bearish leaders with contracts down $1.55 to 2.55. The CME Feeder Cattle Index was $189.51 on 3/13, down 26 cents from the day prior. 

USDA will release updated Cattle on Feed figures on Friday afternoon, with the average trade estimate for February placements running 6% below a year ago. Feb marketing are seen at a 4.4% drop, with March 1 on feed inventories down 4.5%.

The newest Commitment of Traders release indicated spec traders adding a modest 3,867 contracts to their cattle net long position in the week ending 2/28. That put them net long 112,449 contracts, the largest bullish bet since April 2019. In feeder cattle, they added their largest bullish bet in 1 week on record (6,791 contracts) to a new net long of 6,669 contracts.

Wholesale Boxed Beef prices were lower in the Wednesday morning report. Choice was down 88 cents at $285.03, with Select $1.05 lower to $273.51. Tuesday’s FI cattle slaughter was estimated at 127,000 head by the USDA, even with last week. That brings the WTD total to 252,000 head, even with a year ago but 5,000 head above from the same week last year. 

April 23 Cattle  are at $161.625, down $1.425,

Jun 23 Cattle  are at $156.550, down $1.200,

Aug 23 Cattle  are at $156.425, down $1.150,

Cash Cattle Index was $165.000, from $165.00 last week

Mar 23 Feeder Cattle  are at $188.375, down $1.550

April 23 Feeder Cattle  are at $193.500, down $2.250