Cattle futures closed sharply lower on Tuesday in a volatile day of trading with continued support through mid-day—contract highs in some months—and then mostly limit-down in Feeder Cattle, with Live Cattle tagging along. That was with another bump higher in Choice wholesale beef value. There seems no easy explanation for the abrupt sell-off. Today’s weekly Fed Cattle Exchange auction should provide a clearer glimpse of fundamental reality.
Live Cattle futures closed an average of $2.16 lower ($1.80 to $2.60 lower).
Feeder Cattle futures closed an average of $4.39 lower (mostly limit-down $4.50).
Choice boxed beef cutout value was $2.10 higher Tuesday afternoon at $250.45/cwt., the first time above $250 since July of 2105. Select was 13¢ higher at $219.57. The Choice-Select was $30.88 in the afternoon.