LIVE CATTLE futures on the Chicago Mercantile Exchange (CME) ended down on Monday. FEB'10LC futures closed down $0.55/cwt at $85.250/cwt; $0.950/cwt lower than last week at this time. The APR'10LC contract finished at $88.700/cwt; off $0.675/cwt and $1.475cwt lower than last report. Cattle traded lower, as expected, amid bearish reactions to the recent USDA Cattle Inventory report. Cash cattle also traded steady to weak being as much as $1/cwt lower. USDA put the 5-area average on Monday at $84.400/cwt; $0.51/cwt lower than last Monday. USDA on Friday put the choice boxed beef cutout at $140.49/cwt; off $0.24/cwt and $2.72/cwt lower than last report. According to HedgersEdge.com, average packer margins were lowered $21.60 from last report to a positive $15.75/head based on the average buy of $84.66/cwt vs. the average breakeven of $85.66/cwt. Corn should come down or remain in a sideways pattern.
FEEDER CATTLE at the CME finished lower on Monday. MAR'10FC futures finished at $97.725/cwt; off $1.150/cwt and $1.050/cwt lower than last report. The MAY'10FC contract was off $0.950/cwt at $100.850/cwt but$ 0.300 cents higher than last week at this time. Feeders followed live cattle lower while corn prices pressured feeder prices. Volume in cash cattle was light due to winter storms. The feeder market in Oklahoma City was closed due to the weather. As a result, there was no published CME feeder cattle index for Monday.