Cattle Mixed on Monday

Cattle are mixed so far in post CoF trade. Front months are down 22 to 40 cents, with other contracts up 22 to 92 cents at midday. Much of last week’s cash action landed in the $178 level, which was down $2-3 from the week prior. Feeders are trying to push higher, as contracts are up 40 cents to $1.32, with the exception to Nov. The CME Feeder Cattle Index was trimmed by another 12 cents on November 16 to $228.64. 

Commitment of Traders data showed the funds dumped 14.7k longs (~21%) in their live cattle holdings during the week of 11/14. The net position was 41,554 contracts net long.  Spec trader held longs have more than halved since mid Sep. CFTC reported managed money was 1,359 contracts net long in feeders from 35 net short the Tuesday prior. 

Monthly NASS data showed 11.931 million head of cattle were in 1,000+hd feedlots on Nov 1. That was a 1.66% increase from November ’22 inventory and lined up with the pre-report COF expectations. November placements were 2.164m head, or 3.79% above last year. The trade was looking for a 4.9% increase on average. Cattle marketed in October totaled 1.758m head, a 2.55% drop from last year and slightly fewer than expected. 

Wholesale Boxed Beef prices were higher in the Monday morning report. Choice boxes were up $2.28 in the AM release at $296.15, with Select $1.72 higher to $272.41. That left the Chc/Sel spread at $23.74. USDA reported last week’s beef output at 529.2m lbs, up from 514.2 last week and down vs. 561.7 during the same week last year. The year to date total reached 23.509 billion lbs, trailing a year ago by 3.5%. Slaughter was shown at 636k head for the week, 2.9% ahead of last week’s pace, but 5.4% lower than the same week last year. 

Dec 23 Cattle  are at $175.375, down $0.375,

Feb 24 Cattle  are at $176.400, down $0.400,

April 24 Cattle  are at $178.500, up $0.075,

Cash Cattle Index was $178.000, from $180.08 last week

Nov 23 Feeder Cattle  are at $228.640, down $0.735

Jan 24 Feeder Cattle  are at $228.900, up $0.400