Beef futures opened mostly firm on short covering and cash speculation driven by brisk wholesale beef sales. Also, February and April initially had the blessing of technical support which eventually evaporated.

What was once confidence about this week's cash outcome turned into insecurity after a few fed cattle packer bids cropped up at $89 per hundredweight in the shadow of $93 to $94 asking prices.

Spot-February longs were also pressured to liquidate some of their positions in advance of the contract's Feb. 29 expiration and in case of potential deliveries. Spreaders sold nearby-April and bought February and June that, along with fund selling, sank April below key moving-average-support levels.

And, deferred cattle months slid beneath positive trading territory when it became apparent that CBOT corn futures would not mount a comeback after recent losses.

What's more, CME live cattle traders took notice of lean hogs' dramatic losses at the hands of fund selling, sell stops and spreads.

The U.S. Department of Agriculture's midday boxed beef wire on Wednesday showed choice cuts up $0.59 per hundredweight and select items gained $0.90. That, a broker said, favors cattle feeders who are looking for at least steady cash prices for their animals this week.

On the other hand, CME live cattle's retreat on Wednesday could threaten potential cash gains, the broker said.

Nonetheless, calculated packer margins are at their best levels in recent months and gives processors the wherewithal to pay up for supplies if need be.

Feeder cattle closed lower on live cattle's drop, chart-related selling and board premiums' to CME's feeder cattle index.

And, March/April forward spreaders again overpowered funds that shifted some of their spot-month positions into April on the last official day of the Goldman roll. The roll is tied to the Goldman Sachs Commodity Index.

February live cattle closed down 42 points at 91.50 cents a pound, and April closed 75 points lower at 94.02 cents.

March feeders closed 80 points lower at 104.95 cents a pound, and April ended 102 points lower at 108.72 cents

Source: FXSTREET