Negotiated cash fed cattle prices surged $2-$4 higher in the Southern Plain on Thursday at mostly $121/cwt. in the Texas Panhandle and at $122 in Kansas; moderate demand and trade.
Bears took Cattle futures down a sharp notch on Thursday, despite higher cash trade and the fundamentals that provided recent stability—including a gap in harvest-ready fed cattle supplies in the North and a looming seasonal increase in wholesale beef values.
Besides likely profit taking overall, perhaps some of the funds with remaining long positions wanted out ahead of Friday’s Cattle on Feed report. As reported in Cattle Current yesterday, most analysts anticipate a sharp drop in March placements, while expecting the Apr. 1 on-feed inventory to be 7.0-7.5% higher than last year.
Live Cattle futures closed an average of $1.58 lower ($1.20 to $2.27 lower).
Feeder Cattle futures closed an average of $2.03 lower ($1.10 to $2.35 lower).
Choice boxed beef cutout value was 30¢ lower Thursday afternoon at $211.34/cwt. Select was 9¢ lower at $198.48.
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