Cattle Current Podcast-September 28

So much for Monday’s limit-down moves in Cattle futures, on the heels of more August feedlot placements than expected. Stability returned yesterday; today, prices were on a tear to the upside, except for spot contracts. There was likely short covering, but there seems little fundamental explanation for the surge. Perhaps funds are returning, or maybe enough folks are coming to rational conclusions about the higher placements noted in last week’s Cattle on Feed report (see below).

There were only 1,342 head offered, and no sales, in the weekly Fed Cattle Exchange auction. That might have plenty to do with the surge in futures prices and increasing expectations for at least steady cash fed cattle trade this week, if not higher.

After 30¢ higher in spot Oct, Live Cattle futures closed an average of $1.09 higher (67¢ to $1.42 higher).

Feeder Cattle futures closed an average of $2.48 higher ($1.82 to $2.87 higher).

Choice boxed beef cutout value was $1.48 lower Wednesday afternoon at $195.30/cwt. Select was $3.20 lower at $189.91. Both are still higher week to week.