The cattle markets might show plenty of sharply red numbers as of the 1pm close yesterday, with Oct live cattle down almost the daily $3 limit and feeder cattle off $3+. But the real headline came late in the afternoon, as packers, on a Tuesday, raised cash cattle bids as high as $138 live in the South and $133 live/$208 dressed in the North, trading some modest volumes at those levels. That's steady with last week's market, but the fact that they came for cattle on a Tuesday afternoon leads one to believe at least a couple of the major packers are short on inventory with perhaps additional (higher?) business to be done. Futures responded, with Oct live cattle rallying roughly $2.50 off its lows and feeder cattle similarly. Futures will open sharply higher this morning, in line with the levels traded yesterday afternoon. Also note we saw an additional 27 loads of deliveries posted last night at Worthing, SD, as the $133 packer bids in that region remain uncompetitive with ~$139 futures. Oct feeder cattle futures expire tomorrow (the current FC index is at $193.99) before Oct live cattle expire Friday.
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