Cattle Rallying in Reaction to CoF Report

Live cattle futures are coming out of the Cattle on Feed report with gains of 50 cents to $1.25. Last week’s cash trade was 187-188.50 across the south last week, down $1 to 50 cents higher from the previous week. In the north, trade was $196-198, steady to down $2 from the week prior. Feeder cattle futures are up 62 ents to $1. The CME Feeder Cattle Index was down 11 cents on July 18 at $259.07. 

Friday’s Cattle on Feed report showed June feeder placements at 1.564 million head, a 6.85% drop from last year, while marketings were down 8.74% at 1.786 million head. That took the on feed inventory to 11.304 million head on July 1, a 0.54% increase from last year despite ongoing liquidation of the cow herd. 

USDA wholesale Boxed Beef prices were mixed in the Monday AM report, with Choice boxes down another 15 cents to $313.68/cwt and Select products $1.29 higher at $300.09. The Chc/Sel spread is at $13.59. USDA estimated Friday’s FI slaughter at 103,000 head, as some packers dealt with the affected cyber outage. The weekly total was estimated at 584,000 head, which is a 17,000 head drop from the previous week and 41,915 head below the same week last year. 

Aug 24 Live Cattle  are at $183.700, up $0.600,

Oct 24 Live Cattle  are at $184.425, up $0.950,

Dec 24 Live Cattle  are at $185.950, up $1.275,

Aug 24 Feeder Cattle  are at $256.600, up $1.000

Sep 24 Feeder Cattle  are at $256.675, up $0.900

Oct 24 Feeder Cattle  are at $256.525, up $0.875

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.