By Cassie Fish,

For the first time in days and days, the first three months of the CME Live Cattle contract closed higher. Oct LC continued to gain on Dec LC even though the Goldman roll is underway and thousands of contracts of buy Dec sell Oct are being executed.

Today’s positive close though did nothing to alter the overall bearish chart picture. Only the fact that the market is grossly oversold holds a candle of optimism for a bigger recovery. Oct LC posted an inside day with a higher close, generally not considered a friendly close following a big move either way.

In the cash market as of this morning, 37k head have traded in a rang of $123 to $127, dressed $198 to $203. One major packer continues to ‘support’ the cash. It is difficult to get a bid in the north, let alone get one sold.

Boxed beef prices are stepping down slowly, the high posted August 24, the same day futures topped. Choice printed at $347.58 that day and today at $333.27. The drop in futures has been much more dramatic thus far than the break in the cutout.

Carcass weights for the week ended August 28 were released today by the USDA and steer weights dropped two pounds to 901, the second highest in history behind 2020.

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