Cattle Rallying on Friday

Live cattle futures are rallying on cash strength on Friday, with contracts up $1 to $1.60. The 6 deliveries against October from Wednesday were retendered on Thursday. The Friday morning Central Stockyards online Fed Cattle Exchange auction showed sales on 775 of the 2,720 head listed at $188-189. Outside of that this week, there has been Southern sales of $188 and Northern sales of $296 in the beef. Feeder cattle futures are showing gains of $1.95 to $2.85 cents. The CME Feeder Cattle Index was back up 78 cents at $250.25 on October 16. 

Export sales of beef totaled 14,100 MT in the week of 10/10, a slight 2.55% increase from the week prior. Japan was the top buyer of 4,600 MT, with South Korea buying 2,600 MT. Shipments totaled 15,300 MT in that week, a reduction of 4.5% from the previous week. The top destinations were Japan and South Korea, each at 3,800 MT, with 1,900 MT headed to China.

USDA wholesale Boxed Beef prices were higher again in the Friday morning report. Choice boxes were up $1.33 to $320.59/cwt, with Select $1.23 higher @ $294.75. The Chc/Select spread widened to $25.84. USDA estimated Thursday’s federally inspected cattle slaughter at 118,000 head, which takes the weekly total to 488,000 head. That is 14,000 head above the previous week but down 13,670 head from the same week last year.

Oct 24 Live Cattle  are at $187.975, up $1.350,

Dec 24 Live Cattle  are at $187.650, up $1.475,

Feb 25 Live Cattle  are at $188.550, up $1.575,

Oct 24 Feeder Cattle  are at $248.675, up $1.950

Nov 24 Feeder Cattle  are at $248.025, up $2.275

Jan 25 Feeder Cattle  are at $245.950, up $2.825

On the date of publication, Austin Schroeder 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.