Cattle futures closed sharply lower on Tuesday, basically giving back what they gained during the previous day’s rally, driven by short covering and placement numbers in last week’s Cattle on Feed report. Among other factors, bears continue focusing on increasing cattle numbers and stagnant wholesale beef values, rather than the increased tonnage cleared through the market and signs that cattle feeders are maintaining currentness.
Live Cattle futures closed an average of $1.50 lower (92¢ to $2.27 lower).
Feeder Cattle futures closed an average of $2.60 lower (basically giving back everything gained the day before. The exception was 17¢ higher in spot Aug.
There were a few early dressed fed cattle trades reported in Nebraska at $168/cwt. with light demand and very limited trade, but too few transactions to trend. Elsewhere trade was mostly inactive on light demand.
Choice boxed beef cutout value was 27¢ higher Tuesday afternoon at $191.77/cwt. Select was $2.17 higher at $190.79, squeezing the Choice-Select spread to 98¢.
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