Mixed Cattle Market at Midday

Live cattle futures are trading mixed within 50c of UNCH. The April contract is the weakest, while August futures are 15c in the black. CME data confirmed live cattle OI has steadily increased this week into the Cattle Inventory report, up 8.5k contracts (3.2%) since last week. Midday feeder cattle are red, though by less than 50c in the back months. March feeders are 92c in the red. USDA’s cash trade for the week remains unestablished through Tuesday, as last week mostly saw sales near $175. The CME Feeder Cattle Index for 1/29 was $2.13 stronger at $236.28. 

Today’s semi-annual Cattle Inventory report from NASS is expected to show an 87.6 million head herd as of Jan 1. That would be the smallest national total cattle herd since 1957 if realized. Beef cow numbers as of Jan 1 are expected to be down by 2.6% from last year, with beef heifer replacements also reduced because of high feedlot placements during the year. 

USDA’s Wholesale Boxed Beef prices were firmer on Wednesday morning with a 9c bounce in Choice and a 31c bounce for Select. The ribs were quoted at $462.96 cwt. and $417.53 cwt. respectively. USDA reported FI cattle slaughter for Tuesday at 127k head, leaving the week’s total at 252,000. That remains 12k ahead of last week’s pace and 6k head more than the same week last year.  

Feb 24 Cattle  are at $177.900, down $0.125,

April 24 Cattle  are at $181.425, down $0.325,

Jun 24 Cattle  are at $179.350, up $0.125,

Cash Cattle Index was $175.000, from $173.00 last week

Mar 24 Feeder Cattle  are at $240.850, down $0.475

April 24 Feeder Cattle  are at $246.800, down $0.200