Friday markets
“Livestock futures continue to grind lower, showing no interest in trading higher as traders are sidelined, not wanting to support the contracts until more fundamental clarity arises,” remarked DTN Livestock Analyst ShayLe Stewart in her midday comments.
Live and feeder cattle each saw losses today, and cash trade was slow, but still higher in volume than it has been all week.
Live cattle contracts were deep in the red today: The February contract was down nearly $4 to $113.10 and the April contract was down $1.67 to $120.
“Largely, traders are stepping back, not interested in supporting the futures even though this week’s slaughter is expected to be the biggest of the year thus far, and boxed beef prices are higher,” Stewart said.
Cash cattle trade totaled 14,623 head today. Live steers sold between $113-114.50 and dressed steers sold between $178-182. On the formula side, a total of 13,400 head averaging 864 lbs. sold for $183.81.
The Fed Cattle Exchange hosted a special auction this morning, relisting all the cattle that did not sell at yesterday’s special sale. Of the 790 head listed, none sold. High bids ranged from $113.50-114.50.
Boxed beef prices were slightly higher. The Choice cutout was up 14 cents to $240.53 and the Select cutout was up 94 cents to $229.73 on 59 loads.
Slaughter for the day is projected at 119,000 head, bringing the week’s total so far to 602,000 head. Tomorrow’s slaughter is estimated at 64,000 head. This is a stark contrast to last week, when total slaughter reached only 552,000 head.
Feeder cattle
Feeder cattle contracts also did not fare well today. The March contract was down $1.75 to $138.67 and the April contract was down $2.50 to $142.57.
“With cost of gains high and the cash cattle market having a hard time drawing any packer interest, the feeder cattle market sits skeptically, waiting to see where the market trends,” Stewart commented.
The CME Feeder Cattle Index was down 57 cents to $138.91. The March corn contract was up just under a penny today, with the contract settling at $5.55.
South Dakota: Napoleon Livestock Auction in Napoleon sold 6,611 head yesterday. Compared to last week, feeder steers 500-750 lbs. sold steady to $5 higher, with instances up to $7 higher; 750-900 lbs. sold steady to $3 lower, with instances up to $8 lower. Feeder heifers 500-550 lbs. sold steady to $1 higher; 550-700 lbs. sold $1-6 lower; 700-800 lbs. sold steady to $5 higher with instances up to $10 higher. — Anna Miller, WLJ editor
