Live cattle futures are rebounding on Thursday, with contracts up 7 cents to $1.85 at midday. Cash trade saw some light action in across the country at $239-240 on Wednesday. The Thursday morning Fed Cattle Exchange online auction showed no sales on the 1,646 head offered with bids at $238. Feeder cattle futures are slipping lower so far on Thursday, with contracts another 77 cents to $2.50 in the red. The CME Feeder Cattle Index was back down 99 cents at $372.00 on October 21.
On Thursday morning, the White House raised the tariff rate quota on Argentina beef imports to 80,000 MT from the 20,000 MT level as previously expected. Later in the day on Wednesday, USDA also released plans to help expand the US herd, in part by opening up more federal lands for grazing.
A Reuters survey of analysts is looking for September placements to be down 8.8% from last year. The monthly cattle on feed report would normally be out on Friday, but the government shutdown will likely delay that. Marketings are expected to be down 4.1% , with October 1 on feed seen 2% below last year.
USDA Wholesale Boxed Beef prices were higher in the Thursday AM report, narrowing the Chc/Sel spread to $18.37. Choice boxes were down $1.83 to $372.48, while Select was 50 cents higher at $354.11. USDA federally inspected cattle slaughter for Wednesday was estimated at 118,000 head, with the weekly total at 327,000 head. That is 19,000 head below last week and 41,923 shy of the same week last year.
Oct 25 Live Cattle are at $240.500, up $1.450,
Dec 25 Live Cattle are at $241.650, up $1.825,
Feb 26 Live Cattle are at $241.150, up $0.775,
Oct 25 Feeder Cattle are at $364.300, down $0.775
Nov 25 Feeder Cattle are at $362.875, down $1.350
Jan 26 Feeder Cattle are at $358.700, down $2.325
