The cattle complex managed a two-sided affair yesterday, trading higher early before sliding lower through the last half of the session. Futures then traded lower yet into the afternoon hours following a disappointing $2 loss in the choice cutout and $3 loss in the select on the wholesale report, including very weak trimmings quotes. Beef 90s are now quoted at $2.07, a new low for the move and down from $2.15 as recently as Monday. Beefs 50s are back to $0.41, down from $0.53 on Monday. And to compound the problem, a customer indicates we traded some cash cattle in the North yesterday evening at $195 dressed, down from a $199-200 market there last week. There’s been no trade in the South, where packer bids were shown yesterday at $127 live, but if this northern trade is any indication, the market feels disappointingly soft again this week. Do remember the USDA’s monthly COF report will be out this afternoon and is expected to show the on feed count at 102.2% of a year ago, placements at 95.9%, and marketings at 96.2%. Expect futures to start weaker this morning.
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