Beef Export Cancelations Leading to Triple Digit Board Drop
Cattle futures are falling by triple digits through midday. Fats are down by 0.9% to 1%, with feeders 1% to 1.5% in the red so far. The CME Feeder Cattle Index for 10/17 was up by 27c to $247.10.
Analysts are looking for NASS to report an Oct 1 feedlot inventory of 11.42m head, between -1% and +0.3% from last year. Placements are expected to be up 0.8% from ‘22 on average with a 9.8% lower marketings figure for September than a year ago.
The week’s beef bookings were shown at just 425 MT, the lowest weekly total since Nov 2020 led by cancelations from China, Mexico, and Canada. USDA listed the week’s export at 13,650 MT for a YTD total of 644,428 MT.
Boxed Beef prices fell by $2.03 (Choice) and $1.40 (Select) in the Thursday morning update. USDA estimates the week’s FI cattle slaughter at 377k head through Wednesday. That is 2k head behind both last week and last year.
Oct 23 Cattle are at $184.250, down $1.475,
Dec 23 Cattle are at $185.050, down $2.150,
Feb 24 Cattle are at $188.775, down $2.300,
Cash Cattle Index was $182.820, from $182.82 last week
Oct 23 Feeder Cattle are at $243.750, down $3.375
Nov 23 Feeder Cattle are at $245.175, down $4.550