Friday markets
Heading into the last trading afternoon of the week, the cattle contracts are trading fully higher as the market clings to the fact that cash cattle traded higher this week.
Thus far throughout the week, southern live trade has traded at mostly $135-136, which is steady to $1 higher than last week’s weighted averages. Northern dressed deals have been marked at mostly $225-227, which is steady to $2 higher than last week’s weighted average basis in Nebraska. It wouldn’t be unlikely to see a little more cleanup trade develop ahead of the week’s end, but largely the business is done with.
The week’s slaughter is anticipated to be another big one, which helps offset the slight pressure from lower boxes.
August live cattle are up 35 cents at $138.05, October live cattle are up 57 cents at $144.22 and December feeders are up $0.40 at $150.30.
Boxed beef prices are lower, with Choice down $1.18 ($265.10) and Select down $1.08 ($239.27) with a movement of 65 loads (40.45 loads of Choice, 11.98 loads of Select, zero loads of trim and 12.58 loads of ground beef).
Feeder cattle
Even as the corn market pushed a 6-9 cent rally heading into the afternoon’s trade, the feeder cattle contracts don’t seem to care as the nearby contracts are pushing gains well over $1 higher. This past week was incredibly important for the feeder cattle market. With cash cattle prices able to trade 50 cents to $2 higher, it proves the fact that packers are clipping through cattle and running through these supplies faster than originally thought.
Given that feeder cattle placements have been so high due to drought managing practices, feeder cattle buyers needed to see that there was going to be better demand for fats, which they began to see this week. As the market inches closer to the fall run, feeder cattle demand should only get better and has the potential to get extremely strong if the fat cattle market grows stronger.
August feeders are up $1.02 at $180.22, September feeders are up $1.52 at $184.10 and October feeders are up $1.05 at $186.52. — ShayLe Stewart, DTN livestock analyst
