CATTLE: STEADY – HIGHER

Post 207 of 799

Cattle futures continued with their up one day, down the next
recent trend yesterday, this time adding a solid $1.00-1.50 in
both the feeders and the fats. We still have no confirmed cash
cattle trade to report, but packers have been active since
Monday morning attempting to get supplies secured. We have
heard several reports of packers bidding showlists at $1-2 over
the top of the market (whatever the top end of this week’s
official range might be), and we hear at least one report of one
packer bidding +$1.50 vs. Oct. futures. October futures
closing at $168.05 implies a $169.50 cash market vs. last
week’s $164 market?! Overnight futures are firmer again this
morning and it is becoming a safe assumption the cash trade
will be higher this week, just a matter of how much. Official
trade estimates for tomorrow afternoon’s Cattle on Feed report
show the industry looking for the Oct. 1 on feed count to be
99.7% of a year ago, Sept. placements 101.4%, and Sept.
marketings 99.2%. This placement total, while larger than a
year ago, would still be 11% below the five-year average pace.

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