Cattle Close at Highs on Day

Live cattle futures closed the day with gains of 65 to 95 cents, which was near the top of the day’s range. Feeder cattle futures progressed triple digits ahead of the weekend. The CME Feeder Cattle index for July 9 was $134.92, up by 23 cents. CFTC reported managed funds were 22,908 contracts net long in cattle on July 7. That was a wk/wk increase of 30%, but spec trader OI was down by 1.5%. Managed money had reduced their net long in feeder cattle on the week to 1,579 contracts. In the monthly WASDE updates, USDA estimates 2020 beef production at 26.934b lbs. That is up from June’s 26.674. The increase was mostly to 3Q, up 105m lbs to 7.02 billion. 4Q production is estimated at 6.935 b lbs. Wholesale boxed beef prices were mixed on Friday, widening the Chc/Sel spread to $10.21. Choice boxes were $0.91 stronger to $204.5. Select boxes fell another 54 cents to $194.29. USDA estimated cattle slaughter through Saturday at 664,000 for the week, and 16.516m head on the year. The week’s slaughter is 6,000 head above the year prior, but YTD slaughter is still trailing last year’s pace by 5.6%.

Aug 20 Cattle closed at $100.000, up $0.750,

Oct 20 Cattle closed at $104.575, up $0.650,

Dec 20 Cattle closed at $108.400, up $0.950,

Aug 20 Feeder Cattle closed at $135.750, up $1.225

Sep 20 Feeder Cattle closed at $137.325, up $1.150

Oct 20 Feeder Cattle closed at $138.500, up $1.375

--- provided by Brugler Marketing & Management

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