Cattle Rally Into the Weekend

Friday’s live cattle market extended the rally on Friday with another triple digit gain for the weekend. That left the Feb contract at a net $3.62 gain for the week. Friday’s cash cattle sales ranged $165 - $170 for the few reported. USDA maintained the bulk of action this week was near $168 and $268 in the beef. Feeder cattle ended $1.55 to $2.27 higher across the front months, with a net $5.60 gain for the week in Jan contracts. The 12/14 CME Feeder Cattle Index recovered $1.23 to $219.07. 

CFTC’s weekly update showed managed money was adding shorts in live cattle during the week that ended 12/12. The net new selling reduced the group’s net long by 5k contracts to 22,706. The funds had closed positions on both sides in feeders during the week, ultimately reducing their net short by 76 contracts to 1,171. 

Friday afternoon’s boxed beef prices were quoted as $291.64 for Choice, 68 cents weaker, and $260.82 cwt. for Select, a $2.56 increase. USDA reported the week’s beef production at 546.6 million lbs. That is up 2.7% for the week and is 5.7% above the same week last year. The year-to-date total is still lagging by 5% with 25.591b lbs. The week’s slaughter was 2.2% higher for the week and up by 4.3% from the same week last year with 649k head. YTD slaughter trails 2022 by 4.5% with 31.113m head. 

Dec 23 Cattle  closed at $168.225, up $0.725,

Feb 24 Cattle  closed at $169.350, up $1.425,

Apr 24 Cattle  closed at $172.850, up $1.275,

Jan 24 Feeder Cattle  closed at $220.900, up $1.550

Mar 24 Feeder Cattle  closed at $222.175, up $2.050