Firm Close in Fat Cattle
Alan Brugler, Barchart
Jun 17, 2022
Live cattle futures settled off their highs for the day on Friday, but were still up by 27 to 50 cents. Feeder cattle futures rallied triple digits and closed nearer to their day’s highs. August feeders ended the week with a $1.52 loss as Monday’s gap lower remains unfilled. Very limited pickup trade was reported mainly in the South for Friday, with deals from $140 - $145 nationally. The week’s bulk price was mainly $145 in the North and $140 in the South according to the USDA. The CME Feeder Cattle Index was $1.61 higher on 6/16 to $162.17.
The Commitment of Traders report showed that managed money firms were 10,576 contracts more net long in live cattle futures and options given short covering through the week that ended 6/14. That left the group at 31,926 contracts net long. The weekly report showed managed money was 3,553 contracts net short as of 6/14. That came via short covering.
Wholesale Boxed Beef prices in USDA’s PM report were $266.26 cwt. in Choice and $246.53 cwt. for Select. That was a 90c drop and a $1.15 increase from Thursday respectively. USDA estimated the week’s FI cattle slaughter at 667k head through Saturday. That is down by 7k head from last week, and just 3k head above the same week last year.
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