Cattle Falling Back on Monday

Live cattle futures are down 67 cents in nearby August, with other contracts down $5 to $5.75 on Monday.  Cash trade has picked up a few at $355-360 dressed and $223-227. Feeder cattle futures are trading with contracts $2.25 to $3.65 lower at midday. The CME Feeder Cattle Index was down another 85 cents on August 20 to $341.00. Monday’s weekly OKC feeder cattle auction has an estimated 3,500 head for sale, with early sales on feeders down $8-15 on steers and $2-8 lower on heifers. 

USDA’s Cattle on Feed report showed July placement dropping 11.01% from a year ago at 1.422 million head, well below estimates. July marketings were down 7.38% to 1.62 million head, in line with expectations. August 1 on feed inventory was up 1.79% to 11.117 million head, short of estimates calling for a 2.4% increase. 

Commitment of Traders data showed managed money trimming another 3,148 contracts from their net long in live cattle futures and options to 61,514 contracts as of Tuesday. In feeder cattle futures and options specs cut back 1,240 contracts from their net long of 7,498 contracts in the week of August 18.

Wholesale Boxed Beef prices were mixed in the Monday AM report, with the Chc/Sel narrowing to $2019. Choice boxes were down 84 cents at $384.85, with Select $3.34 higher to $364.66. USDA estimated last week’s Federally inspected cattle slaughter at 523,000 head. That was up 6,000 head from the previous week and 32,676 head below the same week last year.

Aug 26 Live Cattle  are at $220.800, down $2.250,

Oct 26 Live Cattle  are at $214.275, down $3.650,

Dec 26 Live Cattle  are at $214.925, down $3.575,

Aug 26 Feeder Cattle  are at $334.075, down $0.675

Sep 26 Feeder Cattle  are at $323.700, down $5.325

Oct 26 Feeder Cattle  are at $318.125, down $5.525