Cattle Markets Prepare for Post-COF Reaction

Friday’s session ended the week with $0.40 to $1.07 losses in front month cattle futures. For the week, Feb fats were only a nickel weaker. USDA reported the bulk of cash sales were at $137 for the week. Feeder cattle futures ended the Friday session $0.87 to $1.65 weaker in the front months. For The CME Feeder Cattle Index was down another 10 cents on 1/20 to $161.10. 

NASS reported 12.037m head of cattle were in feedlots with greater than 1,000 head capacity on Jan 1st. That was up 0.58% from last year, where the trade was expecting a lighter inventory yr/yr. Placements were well above expectations with 1.963m head placed in December, or 6.45% more than Dec 2020. December marketings were lighter than expected with only a 0.22% increase yr/yr,@ 1.857m head. 

Wholesale Boxed Beef prices for Friday afternoon were $292.41 in Choice and $282.33 for Select. That was a 57 cent decrease in Choice while for Select it was a 15 cent bump. USDA estimated FI cattle slaughter for the week at 636k head through Saturday. That is 18k head more wk/wk, but 26k head below the same week last year. 

Feb 22 Cattle  closed at $137.925, down $0.400,

Jun 22 Cattle  closed at $137.300, down $1.075,

Jan 22 Feeder Cattle  closed at $160.275, down $0.900

Mar 22 Feeder Cattle  closed at $163.300, down $1.650