Cattle Look to Head into Christmas Break

Live cattle futures are up a dime in the front month December, with other contracts down $1 to $1.50. Cash trade has picked up ahead of the holiday, with a few $229 sales reported this week, steady to $1 higher than last week. The Wednesday Fed Cattle Exchange showed sales on 827 of the 1,734 head offered, at $229-230, with a lot of 40 head sold at $355 dressed. Feeder cattle futures are up 50 to 77 cents at midday. CME’s Feeder Cattle Index was up another $1.17 to $353.08 on December 22. The CME will close early today, with no trade on Thursday.

NASS Cold Storage data from Tuesday afternoon showed 425.5 million lbs of beef stocks at the end of November, which was down 3.42% from last year and the smallest November total since 2014.

Commitment of Traders data showed managed money adding 3,013 contracts to the spec net long in the week ending on December 16 to 91,303 contracts in live cattle futures and options. In feeder cattle, managed money trimmed 167 contracts from their net long as of last Tuesday to 14,094 contracts.

USDA Wholesale Boxed Beef prices were lower in the Wednesday morning report, with the Chc/Sel spread widening back out to $9.76. Choice boxes were down 98 cents to $354.79, while Select was $4.56 lower at $345.03. USDA federally inspected cattle slaughter was estimated at 123,000 head for Tuesday, with the week to date total at 244,000 head. That was 13,000 head above last week. 

Dec 25 Live Cattle  are at $228.925, up $0.100,

Feb 26 Live Cattle  are at $228.900, down $1.100,

Apr 26 Live Cattle  are at $228.950, down $1.075,

Jan 26 Feeder Cattle  are at $345.400, up $0.775

Mar 26 Feeder Cattle  are at $339.550, up $0.550

Apr 26 Feeder Cattle  are at $338.200, up $0.525