Cattle Commentary: Cattle futures soared higher to start off 2018 with live cattle and feeder cattle leaving gaps on the chart. February live cattle finished the session up 1.85 at 123.40, trading in a 1.30 range (gaped higher on the open). March feeder cattle finished the day near limit, up 4.425, trading in a range of 3.624 on the day. A higher cash trade of 123 on Friday coupled with colder temperatures have the bulls pretty optimistic, there have even been early cash calls for 1-2 higher this week (we think steady). Tomorrows Fed Cattle Exchange has 388 head offered. Fridays Commitment of Traders report showed that funds hold a net long position of 82,669 contracts, this is a reduction of 9,208 (keep in mind this data is compile through Tuesday). Boxed beef prices also saw a nice jump to start the year.
PM Boxed Beef Choice Select Current Cutout Values: 205.14 196.57 Change from prior day: 2.24 3.59 Choice/Select spread: 8.53
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