Cattle Closes Lower before CoF Data

Live cattle futures ended the Friday session with $0.37 to $0.90 losses in the front months. April cattle were $1.10 lower wk/wk. Front month feeder cattle futures ended 42 to 72 cents lower. Friday’s action dipped into but did not erase the $1.67 gain wk/wk in March feeder futures. The CME Feeder Cattle Index for 02/20 was 13 cents higher to $142.08. The delayed Export Sales report showed 19,387 MT of beef was sold in the week ending 02/13. That is 10.83% higher wk/wk, and 29.11% higher than the same week last year. Beef exports through 2020 total 109,694 MT, which is 47.25% higher than last year’s pace. USDA CoF report this afternoon showed 11.928 million head (+2.16% yr/yr) on Feed on Feb 1, which was below the average estimate ahead of the report. Marketings in January were 1.931m head (+1.1% yr/yr), which was more than expected. Placements in January were lower yr/yr at1.955m head (-0.61%), which was 42,000 head below market expectations. Commitment of Traders data from 02/18 showed cattle spec traders were 32,067 contracts net long. Wholesale boxed beef prices were higher on Friday, but widened the Chc/Sel spread. Choice boxes were 59 cents higher, while Select boxes were up by a dime. USDA reported light sales in the WCB at the $120 mark. Cattle slaughter under federal inspection for the week through Saturday is estimated at 628,000 head, which was 8,000 below last week’s FI slaughter.

Feb 20 Cattle closed at $119.725, down $0.375,

Apr 20 Cattle closed at $118.250, down $0.900,

Jun 20 Cattle closed at $110.275, down $0.650,

Mar 20 Feeder Cattle closed at $140.200, down $0.600

Apr 20 Feeder Cattle closed at $142.100, down $0.425

May 20 Feeder Cattle closed at $142.850, down $0.725

---provided by Brugler Marketing & Management

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