Cattle Market Up Triple Digits

Yesterday, there were 6 more tenders against August fat cattle futures, the total through the first two days of deliveries is now 12 contracts. August is trading $1.55 higher so far, the other front month cattle futures are up 72 cents to $1.40 at midday. Feeder cattle futures are also rallying triple digits on Wednesday with gains of as much as $2.32. The CME Feeder Cattle index was back down by 28 cents to $142.33. There were reports of $105 activity in KS this morning. The FCE online cattle auction this morning sold 602 of the 890 head listed for a wtd average price of $104.41. Packers passed on $105 asks, but bid up to $104.50 for four pens. From the August WASDE report, USDA expects 2020 beef production will be 27.028b lbs. That is up 94m lbs from the July estimate, via an increase in the second half of the year. 2021 beef production is expected to increase 2.2% yr/yr to 27.62m lbs, as USDA revised the second half of the year 100m lbs lower. Wholesale boxed beef prices were higher in the AM report. Choice boxes were $208.64 up by 56 cents. USDA’s estimate for the week’s FI cattle slaughter through Tuesday was 230,000 head. That was 1,000 head above last week, but trailing the same week last year by 2,000 head.

Aug 20 Cattle are at $106.200, up $1.550,

Oct 20 Cattle are at $109.700, up $1.400,

Dec 20 Cattle are at $112.725, up $1.050,

Aug 20 Feeder Cattle are at $145.900, up $1.400

Sep 20 Feeder Cattle are at $148.675, up $2.050

Oct 20 Feeder Cattle are at $149.625, up $2.000

--- provided by Brugler Marketing & Management

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