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Cattle

Cattle futures are in rally mode

Live cattle futures are in rally mode, up $3.20 to $3.70 at midday. Cash trade settled in last week at $238-240 live across the country and $375-378 dressed. Feeder cattle futures are up $7 to $8.125 in the front months at midday. The CME Feeder Cattle Index was back up $4.00 to $370.69 on January 29. Monday’s OKC feeder cattle auction showed 2,800 head for sale, with early demand noted as good. 

The annual Cattle Inventory report from USDA showed all cattle and calves down 0.37% from last year at 86.155 million head. Beef cows were tallied at 27.607 million head, down 1.02%, with replacement heifers up 0.89% yr/yr at 4.714 million head. 

Commitment of Traders data showed managed money adding 4,208 contracts to their net long position in the week ending on Tuesday, taking it to 105,685 contracts in live cattle futures and options. In feeder cattle futures and options, specs added 546 contracts to their net long at 16,629 contracts by January 27. 

Wholesale Boxed Beef prices were mixed in the Monday AM report, with the Chc/Sel spread narrowing to $3.41. Choice boxes were up $2.14 to $365.56, while Select was $2.35 higher at $364.29. Last week’s USDA federally inspected cattle slaughter was estimated at 531,000 head. That was 4,000 head below last week and 70,785 head shy of the same week last year. 

Feb 26 Live Cattle  are at $239.050, up $3.200,

Apr 26 Live Cattle  are at $240.475, up $3.675,

Jun 26 Live Cattle  are at $235.150, up $3.425,

Mar 26 Feeder Cattle  are at $368.400, up $8.125

Apr 26 Feeder Cattle  are at $366.025, up $7.750

May 26 Feeder Cattle  are at $362.300, up $7.175

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