Live cattle futures ended the Friday session with gains of $0.87 to $1.47. For the April contract that was enough to end positive on the week. USDA reported more cash sales from $136 to $138 on Friday, maintaining the bulk of activity near $136 for the South. Some higher graded cattle went for $138 this week, but the bulk of Northern trade was $136-$137 with $218 deals in the beef. Feeder cattle futures were also higher on Friday, gaining 12 to 87 cents on the day. The CME Feeder Cattle Index for 1/26 was $159.05, down by another 45 cents.
Going into the NASS semi-annual Cattle Inventory report, the trade is looking for a 1.2% lighter cattle inventory for Jan 1st, with a 1.4% smaller cow herd. Replacement heifers are expected to be 1.8% lighter yr/yr and the average trade guess is to see a 0.9% drop in the calf crop. That report will be released after the close.
CFTC data showed managed money cattle traders added 12,349 new shorts through the week that ended 1/25. That reduced the group’s net long by 12,856 contracts to 49,321.
Wholesale Boxed Beef prices were up $1.31 in Choice and $4.31 in Select to $290.42 and $283.41 respectively. USDA estimated the week’s federally inspected cattle slaughter at 643k head through Saturday. That was 7k more than the week prior but still down 13k head from the same week last year. YTD slaughter trails 2021’s pace by 6.4%.
Feb 22 Cattle closed at $138.700, up $0.875,
Jun 22 Cattle closed at $138.000, up $1.300,
Mar 22 Feeder Cattle closed at $159.625, up $0.125
Apr 22 Feeder Cattle closed at $165.300, up $0.200
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