Live cattle futures saw some light rebound action on Thursday, with contracts up 30 cents to $1.35 at the close. Preliminary open interest was up 1,086 contracts. Cash trade saw some light action across the country at $239-240 so far this week. The Thursday morning Fed Cattle Exchange online auction showed no sales on the 1,646 head offered with bids at $238. Feeder cattle futures failed to see any bounce back on Thursday, as contracts were down $1.72 to $3.60 in the nearbys, falling lower into the close. The CME Feeder Cattle Index was back down $1.38 at $370.62 on October 22.
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. A report late on Thursday suggested the Mexican ag ministry was headed to Washington next week to discuss reopening the border that has been closed to cattle imports due to New World Screwworm
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 PM report, narrowing the Chc/Sel spread to $18.40. Choice boxes were down $2.49 to $373.14, while Select was $1.13 higher at $354.74. USDA federally inspected cattle slaughter for Thursday was estimated at 119,000 head, with the weekly total at 446,000 head. That is 20,000 head below last week and 47,316 shy of the same week last year.
Oct 25 Live Cattle closed at $239.725, up $0.675,
Dec 25 Live Cattle closed at $241.175, up $1.350,
Feb 26 Live Cattle closed at $240.675, up $0.300,
Oct 25 Feeder Cattle closed at $363.350, down $1.725,
Nov 25 Feeder Cattle closed at $361.450, down $2.775,
Jan 26 Feeder Cattle closed at $357.425, down $3.600,
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.
