Cattle Higher on the CoF Report Reaction

Live cattle are up 42 cents to $1.10 in the front months at midday. Feeder cattle are following in stride, with gains of $1 to $2 so far. Cash trade from last week saw cattle exchanging hands in the South at $178-179, down $1 on the week. Northern action was in a range of $185-188, steady to $2 lower. The CME Feeder Cattle Index was down 22 cents on August 17 to $244.04.  

The Cattle on Feed report was expected by traders to show July placements down an average 5.5% from last year. Marketings during the month were seen 5.2% lower. Trade ideas for the August 1 on feed inventory averaged 98.4% of year ago.  USDA indicated that actual August 1 inventory in 1000+ head feedlots was 97.11% of year ago. Placements during July were much lower than anticipated at 91.72% of last year. July marketings were 94.68% (-5.32%) and close to the average trade estimate.  

USDA’s Ag Attache estimates China will bring in 3.32 MMT of beef in 2024, down from two consecutive +3.5 MMT years. Domestic production is forecasted to make up the 200k MT deficit with 7.7 MMT expected. The Attache expects the total cattle her to grow 2.8m head to 108.2.  

Wholesale Boxed Beef prices were lower in the Monday AM report. Choice boxes slipped by 87 cents to $356.24, with Select $2.46 lower to $285.90. USDA estimated last week’s cattle slaughter at 616,000 through Saturday, up 13,000 from last week but down 48,000 from the same week a year ago.  

Aug 23 Cattle  are at $178.950, up $0.425, 

Oct 23 Cattle  are at $179.925, up $1.100, 

Dec 23 Cattle  are at $184.275, up $1.100, 

Cash Cattle Index was $179.000, from $179.96 last week 

Aug 23 Feeder Cattle  are at $246.575, up $1.000 

Sep 23 Feeder Cattle  are at $250.650, up $2.125