Wednesday Trading Move Cattle Both Directions

Nearby live cattle futures ended the midweek session with 2 to 22 cent gains, as the deferred 2023 months closed 25 to 32 cents red. August was still a $5.57 discount to October at the bell and a $15.60 discount to Feb ’23. Wednesday’s FCE auction sold just 114 of the 1,577 head listed, with the Mexican steers going for $133. The other cattle went unsold between $137-139 asks and $133-135 bids. USDA confirmed Northern deals were $1-3 weaker from $139-142 on Wednesday. TX trades were mostly near $136. Feeder cattle futures faded after gains to start the week. At the close the front month contracts were 82 to $1 weaker, but August was still at a net $1.47 gain for the week. The CME Feeder Cattle Index was $172.42 on 7/19 after an 8 cent dip. 

Going into Friday’s Cattle Inventory report, the average trade guess is to see a 2.1% drop in all cattle and calves. The beef breeding herd is estimated 2.6% lighter. Analyst estimates average for a 2% drop in 2021 calf crop.  

USDA’s Wholesale Boxed Beef prices weakened on Wednesday afternoon with a $2.04 drop in Choice and a $1.48 dip in Select. USDA estimates the WTD cattle slaughter at 374,000 head through Wednesday. That is down 3k head from last week but up 23,000 from the same week last year.  

Aug 22 Cattle  closed at $135.750, up $0.025,

Oct 22 Cattle  closed at $141.325, up $0.225,

Dec 22 Cattle  closed at $146.825, up $0.075,

Aug 22 Feeder Cattle  closed at $177.825, down $0.925

Sep 22 Feeder Cattle  closed at $180.975, down $0.825