Cattle futures finally closed strongly higher on Thursday, presumably fueled in part by technicals, short covering and perhaps positioning ahead of Friday’s monthly Cattle on Feed report.
Except for 45¢ and 77¢ higher at either end of the board, Live Cattle futures closed an average of $1.26 higher.
Except for 75¢ higher in spot Mar, Feeder Cattle futures closed an average of $1.86 higher ($1.57 to $2.05 higher).
The CME Feeder Cattle Index for Wednesday was $139.39, the first time below $140 since last April.
Choice boxed beef cutout value was 83¢ higher Thursday afternoon at $225.21/cwt. Select was $1.63 higher at $218.02.
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Jitters ran high on Wall Street Thursday as investors sold hard, apparently spooked by the growing specter of a trade war with China. That following President Trump signing an Executive Order that would impose tariffs on up to $60 billion worth of Chinese imports, in retaliation for intellectual property theft by that country.
The Dow Jones Industrial Average closed 700 points lower. The S&P 500 closed 68 points lower. The NASDAQ closed 178 points lower.
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Frozen beef supplies remain less year over year, according to the latest monthly Cold Storage report from USDA.
Total pounds of beef in freezers Feb. 28 were 8% less than the previous month and 8% less than the previous year.
Frozen pork supplies were up 6% from the previous month and up 8% from last year.
Total red meat supplies in freezers were down slightly from the previous month but up 1% from last year.
Total frozen poultry supplies on February 28, 2018 were up 6% from the previous month and up 14% percent from a year ago.