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Following another $1.00+ rally in live cattle and as much as $2.00 higher in the feeders yesterday, the cattle markets have essentially erased Friday’s strangely limit lower move. In hindsight, the $163 cash cattle trade which spooked futures on Friday is not as negative as initially thought. Much of the $163 trade was for delivery the last week of April or the first week of May, which traditionally is weaker than mid-April market. Plus, it would indicate packers are comfortable and find value in owning cattle inventories at $13(!) over June futures which will soon become the lead month. Note the boxed beef markets continue to firm up in the wake of last week’s miniscule 502K head slaughter with the choice cutout index up a sharp $2.35 yesterday. The choice index now at $260.80 is within striking distance of the prior record high established back in mid-January.