Live cattle futures fell back $3.50 to $3.75 on Wednesday. Open interest dropped 2,922 contracts on the day, mostly out of the December contracts. A few cash sales in the north have been reported at $218-220 this week, with $224 in the South. The Wednesday morning Fed Cattle Exchange online auction s showed no sales on the 1,576 head offered and bids at $220-221 live and $340 dressed. Feeder cattle futures closed with $4.50 to $5 losses in the nearbys and November up $1.07 ahead of Thursday’s expiration. Open interest suggested new selling interest, up 1,268 contracts. The CME Feeder Cattle Index was back up 56 cents to $340.02 on November 18.
Census trade data for August was released on Wednesday, with a total of 190.7 million lbs of beef exports during August, which was the lowest for any month since June 2020 and the lowest for August since 2015.
CFTC data was released on Wednesday afternoon, from before the big selloff for the week of September 30. Managed money cut back 8,791 contracts from their net long as of the end of September to 116,112 contracts. In feeder cattle, speculators were trimming 752 contracts from their net long position to 23,575 contracts on 9/30.
A Reuters survey of analysts is looking for October placements to be tallied 7.9% below last year, with marketings seen down 7.6%. November 1 on feed is seen 2.2% below last year. The report will be released on Friday.
USDA Wholesale Boxed Beef prices were mixed in the Wednesday afternoon report, widening the Chc/Sel spread to $17.68. Choice boxes slipped 72 cents to $371.23, while Select was $1.40 lower at $353.55. USDA federally inspected cattle slaughter for Wednesday was estimated at 120,000 head, with the weekly total at 357,000 head. That 6,000 head above last week but 15,451 head below the same week last year.
Dec 25 Live Cattle closed at $216.300, down $3.725,
Feb 26 Live Cattle closed at $217.250, down $3.600,
Apr 26 Live Cattle closed at $217.800, down $3.525,
Nov 25 Feeder Cattle closed at $341.850, up $1.075,
Jan 26 Feeder Cattle closed at $321.450, down $4.600,
Mar 26 Feeder Cattle closed at $313.400, down $5.000,
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.
