Midweek Cattle Watch FCE Auction

Feeder cattle prices worked higher on Tuesday with 1.7% to 2.7% gains. August went home with a $4.70 gain to a 4 month high. Fall placements still hold a $3-6 premium to the August contract. Fat cattle on the board were 25 cents to 85 cents higher on the day. The weekly FCE auction sold none of the 1,558 head listed. Cash cattle bids were capped at $136 against asks of $137-$140. USDA confirmed light $145 trade on Tuesday mostly in KS and the WCB. The CME Feeder Cattle Index for 7/11 was 87 cents weaker to $171.34.  

USDA’s WASDE report adjusted their quarterly beef production estimates with an offsetting shift of 35m lbs from Q3 to a 50m lb boost to Q4. That left the full 2022 production outlook at 27.922b lbs. 2023 beef production is projected at 25.940 billion. 

USDA’s Wholesale Boxed Beef prices for Tuesday evening were mixed to widen the Chc/Sel spread to $26.34. That was via a 37 cent increase to Choice and an 83 cent increase for Select. USDA estimated Tuesday’s FI cattle slaughter at 126k head, for a weekly kill of 251,000. That is up from 238,000 head during the same week last year. 

Aug 22 Cattle  closed at $136.675, up $0.525,

Oct 22 Cattle  closed at $141.275, up $0.850,

Dec 22 Cattle  closed at $147.200, up $0.700,

Aug 22 Feeder Cattle  closed at $179.575, up $4.700

Sep 22 Feeder Cattle  closed at $181.525, up $4.125