Live cattle futures rallied $2.07 to $2.45 in the front months on Monday, on reaction to Friday’s Cattle on Feed report. Feeder cattle futures also shot up another $2.42 to $3.45. The 11/19 CME Feeder Cattle Index was $136.94, up 14 cents from the previous day. Friday’s CoF report showed 11.973 million head of cattle were on feed on 11/1. The largest surprise came via placements, down 11% from last year and the third lowest for Oct all-time. Wholesale boxed beef prices were higher on Monday afternoon. Choice was up $3.25 at $241.60/cwt, with Select up $2.50 to $217.48/cwt. That widened the Chc/Sel spread to $24.12. There are a few light starter bids for the short week at $110, though not much action has taken place. Monday afternoon’s Cold Storage report showed Oct 31 beef stocks at 500.473 million lbs, up 7.34% from a year ago and 8.09% above September. USDA estimates Monday’s FI cattle slaughter at 120,000 head, up 1,000 from a week ago and even with last year.
--- provided by Brugler Marketing & Management
