Cattle futures started the week trading weaker for most of the session yesterday, finishing with relatively mild 25-80 point losses in both the fats and the feeders. Futures were supported midday and closed well above their daily lows with news of at least one major packer bidding $133 in the South and attempting to get some cash cattle inventory sourced following last Friday’s light volume effort. Feedyard asking prices remain at $135+. Nearby Feb, most active April, and June live cattle futures all also holding support at their 40 day moving averages, which today sit roughly 80 cents below yesterday’s settlements. Today, we’ll have the USDA’s monthly supply/demand update at 11am ct which is probably most important for feed pricing and outlook, but for the beef we’ll be particularly interested to see what they do with their import/export mix forecasts for 2016 in light of higher Aussie prices and an expectation of tightening slaughter supplies there.
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