Live cattle squared up the last trade day of the week with 25 to 80 cent gains. That left the Feb contract a net $2.10 higher for the week and approaching its 40-wk moving average. Feeder cattle weakened on Friday with 7 to 50 cent losses across the front months. The March contract was still up by $5.10 for the week. USDA confirmed Thursday cash business from $173 to $178, citing most action was ~$3 higher near $178. The CME Feeder Cattle Index was $1.22 stronger to $239.17 for 2/1.
CFTC data had managed money cattle traders on a 27k contract net long as of 1/30. That was a 10k contract stronger net long as the spec traders rotated shorts to longs. The CoT update showed spec traders were closing shorts in feeder cattle during the week, leaving them 3k contracts more net long at 4.7k.
USDA’s Wholesale Boxed Beef prices were mixed on Friday afternoon with Choice $1.86 lower to $293.08 and Select 22 cents firmer to $283.47. USDA’s beef output for the week was 536.8 million lbs, a 2.7% increase from last week and a 1.9% increase from the same week last year. Slaughter was reported 3.1% above last week and even with last year at 637k head.
Feb 24 Cattle closed at $180.550, up $0.800,
Apr 24 Cattle closed at $183.750, up $0.575,
Jun 24 Cattle closed at $181.775, up $0.650,
Mar 24 Feeder Cattle closed at $244.800, down $0.075
Apr 24 Feeder Cattle closed at $250.200, down $0.325
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