Upon closer review, the $126 cash cattle trade reported in IA that spurred a futures rally on Tuesday looks to have been some special cattle, with a more widespread and larger volume trade developing in the region yesterday at $124 live and $195 dressed, roughly steady vs the prior week. Tuesday’s futures rally was quickly erased and we finished the day with both the nearby Dec and Feb live cattle contracts pinned the $3.00 limit lower. Expanded $4.50 limits in LC will be in effect today. Dec was synthetically trading near $128.00 by the end of the afternoon, down an additional $1.00 below the limit and should have futures starting near that spot this morning. Packers bidding $125-126 in the South vs a $126-127 trade there last week. On the beef front, the wholesale cutout indexes continue to flounder with both the choice and select near two year lows. The rib markets have indeed been firmer as has been expected while the loin and trim markets remain very weak. Do remember December options expire tomorrow.
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