The cattle markets traded higher from the get go yesterday, following through on Tuesday afternoon's rally and then some. Both live cattle and feeder cattle futures closed limit higher, setting the stage for expanded daily limits today ($4.50 LC, $6.75 FC). Most active Dec live cattle futures were synthetically trading near $144.30 by day's end, another $0.70 higher than the official daily limit and would take out the recent highs established mid last week. We did see some additional scattered cash cattle deals yesterday at $138 live in the South and $208 dressed in the North, steady with Tuesday's business, and, after yesterday's futures move, I think the industry is expecting a round of higher business this next week. Packer margins are down from levels experienced a few weeks ago, but do remain positive, and the industry again finds itself willing to believe the combination of positive processing margins and normal seasonal strength in the middle meats can support the cattle markets deeper into the fall. Remember October feeder cattle futures expire today; Oct live cattle tomorrow.
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