February Live cattle rallied today close to a dollar, settling today at 155.775. Volume for today’s trade was moderate as the market did close the small gap that was formed back on Wednesday and Thursday from 155.575 (wed low) and 155.525 (Thur high). With packers bidding more aggressively than anticipated, some feedlots held out for even stronger prices. Choice beef cutout values rose $4.23 Thursday to $254.30 on movement of 108 loads. The Cattle on Feed report comes out next Friday so there could be some light trading next week in anticipation of the report dropping, especially with the holidays coming up. With the cold weather sweeping across cattle country, there is an expectation that the 1st quarter production will be more exaggerated in 2023. Feedlots are expected losing population compared to levels from one year ago but that will be more defined once we get the CoF numbers.
US beef export sales for the week ending December 8th came in at 10,900 tonnes versus an average of the previous 4 weeks of 17,400 tonnes. Cumulative sales for 2022 have reached 1.015 million tonnes, down 34% from this time last year.
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Peter McGinn
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