Live cattle futures are in rally mode on Tuesday, with contracts up $2.20 to $3.52. Cash trade was slow to get kicked off this week, as things settled in at 245-246 in the North and up to $248-249 in the South. Feeder cattle futures are showing $4. To $4.50 gains across the front months on Tuesday. The CME Feeder Cattle Index was up $1.17 to $375.08 on February 13. Monday’s OKC feeder cattle auction showed sales on 6,698 head, with price action steady to $4 higher for feeder steers and $5-10 higher on heifers.
Commitment of Traders data from CFTC showed a total of 5,897 contracts cut from the spec fund net long position as of 2/10, taking it to 108,634 contracts in live cattle. In feeder cattle futures and options, managed money trimmed back 273 contracts from their net long to 16,162 contracts by Tuesday.
