Cattle Current Podcast-August 8

Owners of long positions in cattle futures ran for the exits to start the week, taking Feeder Cattle sharply lower, while hammering nearby Live Cattle. There’s not much concrete to explain the level of bearishness. A case can be made for increased fund liquidation based on last week’s CFTC report, as well as technical selling. More than anything, at least for the day, traders seem to be betting on cattle futures breeching support levels, thinking increased beef production will overwhelm positive fundamentals. The more bullish set points to less production relative to cattle numbers than previously expected (lower carcass weights year to year for a sustained period) and apparent currentness, from the feedlot, to the packinghouse, to freezers and even the pace of calf and feeder cattle marketing.

Choice boxed beef cutout value was 89¢ lower Monday afternoon at $202.72/cwt. Select was 31¢ lower at $197.00.

Live Cattle futures closed an average of $1.89 lower ($1.10 to $2.97 lower).

Feeder Cattle futures closed an average of $3.14 lower ($2.32 to $3.75 lower).