Cattle Rally on Monday Following Bullish USDA Cattle on Feed Data

Live cattle futures closed the Monday session with contracts $3.87 to $5.95 higher. Cash trade has started out on the quieter side this week, with feedlots compiling showlists. Feeder cattle futures rallied on the day. Contracts didn’t quite get to the $10.75 daily limit, but posted gains of $6.75 to $9.30 on the day. September was up $3.90 at the close. The CME Feeder Cattle Index was down 67 cents on September 17 to $339.05. The Monday OKC feeder cattle auction had an estimated 5,700 head for sale, with prices noted as $4 higher on heavier steers and $4 lower on lighter stees. Heifers were down $1 to $5. Steer calves were mixed, up $5 to lower, with heifer calves down $5-10.

The Monday Crop Progress report showed the US pasture rating at 17% gd/ex, down 2% on the week. The Brugler500 index was back down 6 points to 242.

USDA’s Cattle on Feed report from Friday showed August placements well below estimates at 1.617 million head, a record low for the month and 9.16% below last year. Marketings during the month were down 3.31% at 1.519 million head. September 1 on feed inventory was up just 0.75% from a year ago at 11.163 million head.  

Wholesale Boxed Beef prices were higher in the Monday afternoon report, with the Chc/Sel at $20.58. Choice boxes were up $4.41 at $376.35, with Select $2.51 higher to $355.77. USDA estimated Federally inspected cattle slaughter for Monday at 105,000 head. That was 2,000 head above last week but 4,283 head below the same Monday last year.

Oct 26 Live Cattle  closed at $220.950, up $5.025,

Dec 26 Live Cattle  closed at $222.000, up $5.375,

Feb 27 Live Cattle  closed at $223.100, up $5.750,

Sep 26 Feeder Cattle  closed at $337.475, up $3.900,

Oct 26 Feeder Cattle  closed at $330.250, up $6.750,

Nov 26 Feeder Cattle  closed at $326.100, up $8.100,

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.