Cattle Complex in Red at Midday

Alan Brugler Barchart Fri Dec 4, 2020

December live cattle futures’ options expire today. Price action appears to be pushing for a 108 pin, the 108 and 110 strikes have the largest OI with 1,231 open calls and 2,482 open puts and 2,398 open calls and 1,826 open puts respectively as of 12/3. The other front months are down 30 to 62 cents. Feeders are 12 to 30 cents weaker so far. The CME Feeder Cattle Index was $139.44 on 12/02, down 43 cents. USDA reported Thursday cash sales were $107-$111. The bulk of activity for the week has been near $110 with $172-$174 in the beef. Wholesale boxed beef prices were lower again on Thursday with a $1.70 drop in Choice and a $3.02 drop in Select. Choice rib primals were quoted at $514.80 in the PM report. USDA estimates the week to date cattle slaughter at 481k head through Thursday. That is up 1,000 yr/yr.

Dec 20 Cattle are at $108.800, down $0.800,
Feb 21 Cattle are at $111.950, down $0.625,
Apr 21 Cattle are at $115.875, down $0.425,
Jan 21 Feeder Cattle are at $139.500, down $0.300
Mar 21 Feeder Cattle are at $139.200, down $0.125
Apr 21 Feeder Cattle are at $140.525, down $0.175

 

--- provided by Brugler Marketing & Management