Cattle markets were higher again today before the Cattle on Feed report came out at 2pm central. In my opinion, cattle markets may be putting in a top in the market as volume continues to decline in the February contract with inverse price action. I suspect that market will again trade higher Monday based off of the bullish report today that was in line with expectations and retest the highs but ultimately reverse before making any additional new highs.
The CoF report was as follows:
On Feed down 2%
Placed down 6%
Marketings up 1%
The USDA cattle slaughter numbers came in at 129,000 head yesterday, bringing the total for the week up to 515,000 head which is up 5,000 head from last week and up from 488,000 from a year ago. The USDA boxed beef cutout was up $1.03 at mid-session yesterday and closed a penny higher at $257.10. This was down from 263.27 the previous week. The US export sales for the week ending November 10th came in at 13,428 tonnes for 2022 delivery and 3,827 for 2023 for a total of 17,255. This was up from the previous week and the highest since October 13th. The largest buyer this week was Mexico at 5,622 tonnes followed by South Korea at 3,707 and Japan at 2,682. So far, South Korea has the most commitments for 2022 at 271,000 tonnnes, followed by Japan at 250,000, then China at 160,900.
Cash cattle traded in the $151 to $152 area in the Southern Plains on Thursday, up around $1 to $2 from last week. Trade in the northern market turned active in the $154 to $155 range, also around $1 to $2 higher than last week.
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Peter McGinn
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