April cattle closed near unchanged on the session yesterday, but down about 130 points from the early highs. The market traded moderately higher on the session early and above Tuesday's highs to 112.60, but traded back down to near unchanged levels into the mid-session. The surge higher in corn prices was thought to have supported deferred cattle contracts, as many traders see lower weights and less on-feed supply ahead due to the high corn values. News of 20 deliveries against the February futures and weakness in equity markets overnight were also seen as factors that triggered additional long liquidation selling. Snow and cold weather are generally expected to be stressful for feedlot cattle areas of the western and southern plains. This adverse weather likely reached a peak overnight due to very cold weather, but temperatures are expected to rise significantly into the weekend. The estimated cattle slaughter came in at 126,000 head yesterday. This brings the total for the week so far to 372,000 head, up from 357,000 head last week at this time and up from 361,000 head a year ago. Boxed beef cutout values were up 8 cents at mid-session yesterday and closed 5 cents lower at $169.77. This was down from $172.73 the prior week and is the lowest since January 14th.
Join the Discussion