At the closing bell on Friday, front month live cattle futures were down $0.85 to $1.72. Feeder cattle futures also dropped triple digits with losses of as much as $2.07. The 1/27 CME Feeder Cattle Index was $135.34, up by 51 cents. USDA confirmed cash trades for the week were $110-$113, but mostly at $113. USDA’s Jan Cattle Inventory Report revised last year’s herd 620k head lower to 93.79m head. The 2021 inventory was 0.2% below that, in line with estimates @ 93.594m head. Beef replacement heifers were higher yr/yr, despite an increase to last year’s figure, at 5.812m head. All beef cows was still 0.6% lower, with the trade expecting a 1-2% reduction, with 31.158m head. The 2020 calf crop was reported as 35.135m head. Rotation trading in cattle futures and options left managed money 71,803 contracts net long. For feeders, spec traders flipped back to net long. Wholesale Boxed Beef prices continue the rally. Choice boxes were another $1.96 higher at $233.95 cwt. and Select boxes were up $1.82 to $222.70. USDA estimates the week’s slaughter at 653,000 head through Saturday, which is 15,000 head above the same week last year. 

--- provided by Brugler Marketing & Management