Live cattle futures saw weakness of $1.10 to $1.50 across most contracts on Thursday. Cash trade has yet to get kicked off this week, with $232 bids. The Thursday Fed Cattle Exchange online auction showed bids of $232 to $233.50 but no sales on the 1,510 head. Feeder cattle futures were down 72 cents to $1.10, as expiring January was up $1.07. The CME Feeder Cattle Index was back up $2.70 to $366.69 on January 28.
The annual Cattle Inventory report from USDA will be released on Friday, with traders looking for all cattle an calves down 0.3% from last year. Beef cows are seen up 0.4%, with replacement heifers up 1.7% yr/yr.
Export Sales data showed 16,893 MT of beef sold in the week of 1/22, the largest since November. South Korea was the top buyer of 7,600 MT, with 4,900 MT sold to Japan. Beef shipments were 12,574 MT in that week. A total of 3,800 MT was headed to South Korea, with 3,600 MT on its way to Japan.
Census trade data from this morning showed beef exports on a carcass basis at 190.4 million lbs in November, the lowest since 2009. On a tonnage basis, beef imports were down 1.2% from last year at 151,316 MT.
Wholesale Boxed Beef prices were lower in the Thursday afternoon report, with the Chc/Sel spread widening to $6.94. Choice boxes were down $2.08 $367.66, while Select was $2.85 lower at $360.72. Wednesday’s USDA federally inspected cattle slaughter was estimated at 112,000 head, with the weekly total at 436,000 head. That was 11,000 head below last week and 47,143 head shy of the same week last year.
Feb 26 Live Cattle closed at $235.500, down $1.325,
Apr 26 Live Cattle closed at $237.275, down $1.450,
Jun 26 Live Cattle closed at $233.275, down $1.175,
Jan 26 Feeder Cattle closed at $369.175, up $1.075,
Mar 26 Feeder Cattle closed at $365.125, down $0.725,
Apr 26 Feeder Cattle closed at $363.225, down $1.075,
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.
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