Yesterday marked the third consecutive session of a two-sided cattle trade, with futures torn between mostly positive spot fundamentals and much weaker macro markets. The S&P 500 moved to fresh four month lows yesterday, crude oil to multi-year lows. Meanwhile, we did see some additional cash cattle activity take place yesterday, with the North reporting some $209-210 dressed sales and the South some very light volume at $133. That’s steady with last week’s market and a $1 premium to nearby Feb futures, which is right on the historical average basis for this time of year. The bulk of this week’s trade is still ahead of us, but increasingly looks to be fully steady or even something higher than last week despite a larger showlist count. Remaining feedyard asking prices are at $136+ against $133 packer bids. Yesterday afternoon’s boxed beef report showed the choice cutout up a slight $0.03, but not lower, and live cattle futures managed a near 60 cent rally off the 1pm settlement prices.
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