USDA state by state reporting shows last Friday’s late cash cattle trade came at $136 in KS and TX, $133 NE, and $132 in CO and IA. All of that would generally be down $2 vs the prior week and a far cry from the steadyhigher levels we’d imagined as recently as midday Friday. Combine that disappointment with another round of sharp losses in the equity and energy markets yesterday and cattle futures traded sharply lower from the start, pinned limit lower less than an hour into the session. Synthetics were trading as much as an additional ~$2 lower in nearby Feb live cattle futures.
Note the Feb-April spread traded all the way from a $1.65 inverse on Friday to as weak as a $0.47 carry at one point yesterday afternoon, a HUGE daily move for a spread. Expanded limits will be in place today and outside markets are again offering no help. Do note that there were zero deliveries posted last night in our first day of the delivery period.
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