Friday markets
As ShayLe Stewart, DTN livestock analyst, put it: “It’s been a gloomy day for the livestock complex as the contracts stairstep their way to lower thresholds.”
Live cattle futures closed mixed. The April contract, on its last day, closed $3.40 higher to $141.90, and the June contract lost $1.25 to $132.65.
“With the technical side of the live cattle market dead set on trading lower, feedlots are worried about what next week could hold,” Stewart said.
Cash trade through the day was about 1,800 head, with live steers selling from $145-147. Cash trade for the week will likely total over 132,000 head.
“Last week’s cash cattle volume was big, and this week’s volume is shaping up to be big too, which again makes one wonder just how aggressive packers will be come next week with the board having already sold out for lower price points,” Stewart remarked.
Slaughter for the day is estimated at 118,000 head. With tomorrow’s slaughter projected at 40,000 head, the week’s total will likely be about 656,000 head, about 10,000 short of last week.
Boxed beef prices were lower another day on 127 loads. The Choice cutout lost $1.82 to close at $260.78, and the Select cutout lost $3.09 to close at $247.97.
Feeder cattle
Feeder cattle futures were lower, with the May contract down $1.60 to $156.35 and the August contract down $2.12 to $168.27.
The CME Feeder Cattle Index lost 72 cents to close at $155.64.
Corn futures traded sideways, with the May contract up 2 cents to $8.18 and the July contract unchanged at $8.13.
“Without anything exciting or supportive happening in the live cattle market, the feeder cattle contracts have no other option but to plunder lower as grain prices show them no mercy,” Stewart said.
South Dakota: Mitchell Livestock Auction in Mitchell sold 4,589 head on Thursday. Compared to a week earlier, feeder steers under 700 lbs. were too lightly tested for comparison, and over 700 lbs. sold $5-10 lower. Feeder heifers under 650 lbs. were not well tested for comparison, 650-750 lbs. sold $5-10 lower and over 750 lbs. sold steady with instances of $1 higher. — Anna Miller, WLJ managing editor
