If yesterday’s weekly Fed Cattle Exchange auction is any indication, cash fed cattle prices this week should be at least steady. There were seven lots of heifers (1,469 head) from Nebraska selling for a weighted average price of $110/cwt. (1-9 day delivery). That was steady with the previous week’s country trade in that region. There were no sales of the other 656 head offered, although one lot was passed out at $112.
Cattle futures closed mostly slightly higher Wednesday with increased open interest in Feeder Cattle, but continued contraction in open interest for Live Cattle. Despite trade worries and a limit-down move in Lean Hogs, there appears a growing sense that Cattle futures are turning the corner past the bottom. Perhaps notions that feedlot placements were lower again last month (see below) added some firmness.
Except for 5¢ lower and 2¢ lower in Feb and Apr, respectively, Live Cattle futures closed an average of 30¢ higher (12¢ to 77¢ higher).
Except for 20¢ lower in spot Aug, Feeder Cattle futures closed an average of 32¢ higher (5¢ to 97¢ higher).
Boxed beef cutout values were lower on light to moderate demand and heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.41 lower in the afternoon at $218.29/cwt. Select was $1.25 lower at $201.05.
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