Cattle Rallied Triple Digits

Live cattle futures rallied triple digits through the midweek session. Feb contracts were 92 cents higher to $142.90. The CME reported 10 Feb contracts were tendered for delivery on 2/8. Only one sale was made for the weekly FCE auction, as 35 California steers sold for $139. The other 1,961 head were unsold between $140+ asks and $138-$139 bids. Outside of the FCE, USDA reported cash business in the South at $140, with sales from $138- $140. Northern dressed trade has been mostly $220 for the week, with higher grades going $225. Feeder futures were 80 to 90 cents higher, with March rallying $1.40. The CME Feeder Cattle Index from 2/7 was $161.43 after a $1.29 boost.  

USDA’s quarterly beef production estimates were 13m lbs lower in 2021 from a Q4 reduction to 27.937 billion lbs. 2022’s production is forecasted at 27.375 billion lbs, that was up by 210m from Jan’s estimate as the +100m lb increases to both the 3rd and 4th Qs offset the Q1 20m lb drop and Q2 10m lb decrease. 

Wholesale Boxed Beef prices were still lower on Wednesday afternoon, with a $1.67 drop to $275.79 and a $1.79 dip in Select to $272.05. USDA has the FI cattle slaughter estimated at 365k head for the week through Tuesday. That compares to 362k head last week and 345k head during the same week last year. 

Feb 22 Cattle  closed at $142.900, up $0.925,

Jun 22 Cattle  closed at $142.475, up $1.225,

Mar 22 Feeder Cattle  closed at $168.275, up $1.400

Apr 22 Feeder Cattle  closed at $172.575, up $0.800