Live Cattle Futures Edge Higher, While Feeders Struggle With Rising Feed Costs

Live cattle were higher Tuesday while feeders weakened in the face of rising feed costs. The front month live cattle found afternoon strength and closed 15 to 50 cents in the black. Feeders stayed down by triple digits on Tuesday, going home with losses of as much as $1.72. Last week’s cash market was mostly $142-$143, with the full range of $140 - $144. The 2/17 CME Feeder Cattle Index was firm at $162.14. 

Wholesale Boxed Beef prices from Monday were mixed and flipped the Chc/Sel spread negative by $2 cwt. Choice was down by $2.45, while Select had firmed by $1.80 to $263.64 cwt. That was the first time Select had a premium to Choice since September 2017 and was the largest premium for Select recorded since the data series started in 2001. USDA’s FI cattle slaughter was estimated at 123k head on Tuesday, which was even with last week and the same Tuesday last year. Week to date cattle slaughter is running 10k head behind last year’s pace with 231k head through Tuesday. 

Feb 22 Cattle  closed at $143.750, up $0.500,

Jun 22 Cattle  closed at $141.900, up $0.400,

Mar 22 Feeder Cattle  closed at $164.225, down $1.200

Apr 22 Feeder Cattle  closed at $169.125, down $1.725