Cattle Market is Mixed to Mostly Lower at Midday

Live cattle futures are mixed, April futures were 30 cents higher at midday, with Dec and Feb posting 17 to 22 point losses. Feeder cattle futures are giving back some of yesterday’s triple digits gains, posting losses of as much as $0.60 in the front months. The 12/10 CME Feeder Cattle index was at $143 even following a 41-cent drop. Beef export sales for the week ending 12/05 were released this morning, and the USDA stated that 11,898 MT were sold. That was the second consecutive week with lower wk/wk sales and was 41.8% lower than the 5-week average. Within the same report, the USDA indicated that weekly shipments were 17,215 MT, which was a 17.68% increase over last week and only 9.7% below the 5-week average. Wholesale boxed beef prices are still on the decline, abiding by a (delayed) seasonal pattern of tightening the Choice/Select spread, which is currently at $13.37. Choice boxes were $2.04 lower this morning, while select boxes had dropped by $0.48. Cash cattle negotiations this morning show $118 bids in TX, with asks still in the $121-$122 range. FCE will hold a Friday sale this week, with showlists consisting of 977 head so far. The USDA estimates week to date FI cattle slaughter at 365,000 head through Wednesday.

Dec 19 Cattle are at $120.400, down $0.175,

Feb 20 Cattle are at $125.100, down $0.225,

Apr 20 Cattle are at $126.175, up $0.300,

Jan 20 Feeder Cattle are at $142.225, down $0.550

Mar 20 Feeder Cattle are at $143.075, down $0.600

Apr 20 Feeder Cattle are at $145.325, down $0.150

---provided by Brugler Marketing & Management

Market Commentary provided by:

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