Friday markets
“Some livestock contracts are taking another swing at the market before the week closes and heads into the weekend,” began DTN Livestock Analyst ShayLe Stewart. “Feeder cattle and lean hog contracts are taking advantage of the momentum while the live cattle contracts are hesitant.”
Live cattle contracts were mixed: The August contract traded up 18 cents to $102.80, October was down 53 cents to $106.45, and December was down 88 cents to $110.08. Feeder cattle contracts didn’t fare much better.
“As this week progressed, a toppy chart started to form and with Thursday’s lower close, prices once again sank below the resistance plane. Friday’s trade has pushed nearby contracts lower and regardless of the phenomenal strength throughout the country, the nearby contracts keeping trading lower,” Stewart said. “The August feeder cattle contract was down 75 cents to $142.73, September down 75 cents to $145.13, and October down 38 cents to $146.40.”
Cash trade is still limited in all regions. Kansas, the Northern Plains, and western Corn Belt experienced limited cash trade with light demand. Cash trade has been at a standstill in Texas. The last reported market in the Southern Plains was on Wednesday with live purchases at $100. Thursday was the last reported market in the Northern Plains and western Corn Belt with live purchases at $103 and dressed purchases in Nebraska and western Corn Belt at $163. A total of 6,259 traded on the cash market and 25,800 steers and heifers traded on formula, averaging $157.72 at 872 lbs.
Boxed beef made some small gains today: The Choice cutout was up 81 cents to $205.47 and the Select cutout was up 74 cents to $192.75 on 116 loads.
Today’s estimated slaughter was at 109,000 head, several thousand head down from last week and a year ago. Tomorrow’s slaughter is estimated at 60,000 head, over 10,000 head higher than the same time last week and last year. USDA has vastly overestimated slaughter levels for the past several weeks, revising actual levels 4,000-14,000 head down from the predicted numbers. — Anna Miller, WLJ editor
