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Cattle Futures Rebound as Tyson Trims Capacity and USDA Data Signal Tighter Supply

Lower feedlot placements together with Tyson’s plant changes are reshaping near-term cattle fundamentals.

Overview

  • Live cattle jumped $4 to $6 and feeders climbed about $8 to $9 on Wednesday after this week’s expanded-limit selloff, reflecting sharp repositioning into the holiday break.
  • Tyson plans to shutter its 5,000 head-per-day Lexington, Nebraska plant and run Amarillo, Texas on one full-capacity shift, with the shutdown expected January 20.
  • USDA’s latest Cattle on Feed showed October placements down 10% to 2.039 million head and Nov. 1 on-feed at 11.706 million, about 2% below last year.
  • Cash trade printed lightly at $208 to $210 in the North with dressed deals near $330, and boxed beef was mixed Wednesday morning as the Choice/Select spread narrowed to about $10.
  • Grain markets firmed into Thanksgiving as corn rallied on strong ethanol output, soybeans rose despite weak inspections with only a 123,000 MT China sale officially reported, and wheat posted modest gains with first-notice day set for Friday.