April cattle closed 5 higher on the session and up 245 on the week. The market moved from moderately lower on the session early in the day to higher on the session into the mid-day. A break in beef prices late yesterday plus weakness in outside markets due to China economic concerns helped pressure the market early. News that cash cattle traded $3.00-$4.00 higher on the week to $110.00 helped to support the solid recovery off of the lows. The premium of futures to the cash and the weaker tone to beef prices recently may have limited the upside. Boxed-beef cut-out values at mid-session came in at $166.96, down $.26 on the day and down from $167.66 last week at this time. For the Cattle-on-Feed report released after the close, the USDA pegged February 1st on-feed supply at 105.6% of last year which was a little higher than expected and might be considered negative. Placements during January came in right in line with expectations which leaves a completely neutral impact for April and June cattle. Marketings for the month of January were sluggish compared with expectations and this left on-feed supply a bit higher than expected and might be considered a bit negative for the cash market and nearby futures.
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