Cattle Rally Follows Cash Strength Ahead of Cattle on Feed Report

Live cattle futures were up $1.60 to $2.52 on Friday, with February up $2.75 this week. Cash trade found its footing on Friday at $233 to $236.50 live and $370 dressed. Feeder cattle futures were 80 cents to $1.07 in the green, as January was up $2.87 on the week. The CME Feeder Cattle Index was down $1.75 to $363.48 on January 22.

The monthly Cattle on Feed report showed December placements down 5.38% from last year at 1.554 million head. Marketings during the month were up 1.78% yr/yr to 1.773 million head. January 1 on feed was 11.45 million head, down 3.15% from last year. We got a breakdown of steers and heifers this month, with Jan 1 inventory of heifers down 3.07% from last year (vs. steers down 3.22%) and a ratio of 38.73%, up from 38.70% last year. 

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Cold Storage data showed beef stocks down 3.51% from a year ago as of December 31 at 437.46 million lbs, That was up 2.8% from last month but the lowest December total since 2009.

USDA’s wholesale Boxed Beef report from Friday afternoon were higher, with the Chc/Sel spread widening to $6.53. Choice boxes were up $1.47 to $368.92, while Select was 66 cents higher at $361.30. This week’s USDA federally inspected cattle slaughter was estimated at 535,000 head. That was 27,000 head below last week and 58,858 head shy of the same week last year. 

Feb 26 Live Cattle  closed at $234.900, up $2.525,

Apr 26 Live Cattle  closed at $236.925, up $2.100,

Jun 26 Live Cattle  closed at $232.500, up $1.600,

Jan 26 Feeder Cattle  closed at $364.800, up $1.075,

Mar 26 Feeder Cattle  closed at $360.175, up $0.900,

Apr 26 Feeder Cattle  closed at $358.750, up $0.800,

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.

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