Cattle markets rallied today, following through off of a positive price action Friday along with the bullish Cattle on Feed report which showed On Feed down 3%, Placed down 8% and Marketings down 6%. Cash trades, in my opinion, will give the market it’s direction this week especially if there are cash reports with solid volume behind it. The noon beef report today showed Choice cutout value down 61 cents at $271.71, while Select grade fell 57 cents to $255.86. The Choice-Select spread is currently at $15.25. Movement at midday today was 60 loads.
The feeder cattle market saw strong rallies across with board with near term contracts up over $2 today and deferred contracts up over $1 with the September contract settling at 208.30 and the October contract settling at 211.05. A sharp sell of in the grain markets today helped support the feeders as well with reports of good rains in South America. In my opinion, Cow-Calf operators should be looking to protect any downside price risk now should the market lose momentum due to a possible increase in production by the time of the 3rd and 4th Quarter.
April Live Cattle
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