Cattle Firming Up as Parabolic Grains Rally Stalling

The recent stalling in row crop’s exponential jump higher led cattle to firm up from their own downward momentum. Traditionally the correlation between fats and grains is a relatively weaker fit. Live cattle futures ended the Tuesday session with $0.77 to $1.52 gains in the front months. USDA reported moderate $138 trade in the South on Tuesday, with light $138 trade in NE as well. Front month feeder cattle futures ended with $0.65 to $1.40 gains, save for the March contract which was down another 57 cents. The CME Feeder Cattle Index for 3/7 was $154.11, down by another $1.26. 

Wholesale Boxed Beef prices were weaker on Tuesday afternoon, as USDA quoted Choice boxes $2.27 lower and Select $5.28 lower. USDA estimates FI cattle slaughter was 125,000 head again for Tuesday, leaving 250k head WTD. That is up 4k head from last week and outpacing the same week last year by 9,000. 

Apr 22 Cattle  closed at $139.050, up $1.150,

Aug 22 Cattle  closed at $136.475, up $1.175,

Mar 22 Feeder Cattle  closed at $154.025, down $0.575

Apr 22 Feeder Cattle  closed at $160.325, up $0.650