Managed Money Bought Into Cattle

Live cattle futures closed with gains of 27 to 35 cents for nearby contracts, pulling the weekly change up to 22 1/2 cents above last Friday. Nov feeder cattle dropped $2.15 over the week, with nearby futures closing Friday with gains of 10 to 22 cents. The WASDE indicated that US 4th quarter beef production is 88 million lbs higher than October’s projection, forecasted to bring the yearly production to 27,036 million lbs (about 1% above last year). Wholesale boxed beef prices continue to increase. Choice boxes are up another $0.83 to $239.12, and select boxes gained $0.24 to close at $213.26. The bonus online auction from FCE today sold 119 of the 1684 head offered, all from KS at $115 (55% choice grade); KS and TX feedlots passed on $113 bids. Cash trades reported to the USDA were at $115 in TX, $114 for KS, as much as $117 for the WCB, and 116$ in Nebraska. Nebraska also saw some Friday dressed cash sales of $181. The 11/06 CME Feeder Cattle index was down 17 cents to $146.09. CFTC reported that as of Tuesday, managed money was net long for live cattle futures by the largest amount since May. Feeder cattle futures were also net long (by 91 contracts), the first time managed money had been since April. The USDA estimated cattle slaughter WTD including Saturday, is 651,000 head.

DEC 19 Cattle closed at $119.300, up $0.300,

FEB 19 Cattle closed at $125.125, up $0.275,

APR 20 Cattle closed at $126.200, up $0.350,

NOV 19 Feeder Cattle closed at $145.425, up $0.225

JAN 19 Feeder Cattle closed at $145.875, up $0.100

MAR 19 Feeder Cattle closed at $145.500, unch,

--provided by Brugler Marketing & Management




Market Commentary provided by:

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