Front month live cattle futures are trading $0.92 to $1.37 higher through midday with positioning ahead of the semi-annual inventory report. USDA reported $136 to $138 for last week’s cash trade. Feeder cattle futures are also rallying, with midday gains of as much as $3.27. The CME Feeder Cattle Index for 1/27 was $158.66, down by another 39 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% lower 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.
Wholesale Boxed Beef prices were mixed in the AM report, with a 4 cent dip in Choice and a $1.80 bounce in Select. 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 are at $139.925, up $1.225,
Jun 22 Cattle are at $139.425, up $1.425,
Mar 22 Feeder Cattle are at $163.150, up $3.525
Apr 22 Feeder Cattle are at $168.500, up $3.200
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