Friday markets
The live cattle and feeder cattle contracts were reluctant about pushing prices higher ahead of the weekend.
Live cattle closed lower, with the February contract down 47 cents to $141.87 and the April contract down 70 cents to $146.17.
“The complex has all but tapped out of the market for the week as traders aren’t interested in doing much ahead of the weekend and the cash cattle market sits stale with no new trade has developed,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was light, with 3,844 head selling between $141-144, averaging $142.82. Dressed steers sold for $224. On the formula side, 33,900 head averaging 872 lbs. sold for $223.84.
“The dreary realization of this week’s trade isn’t that the futures complex is trending lower in the latter half of the week, but that the cash cattle market will face some headwinds in the weeks to come as packers were able to buy cattle with time this past week,” Stewart said. “We knew at some point packers were going to pump the brakes on the cash cattle market and that’s how they ended up doing so. It will be important to keep watch for Monday’s report to see exactly how many cattle were bought for deferred delivery. The more cattle that are committed with time, the tougher it gets on the current cash cattle market.”
Slaughter for the day is 120,000 head, and Saturday’s slaughter is projected to be 51,000 head, bringing the weekly total to 659,000 head.
Boxed beef prices were lower on 61 loads, with the Choice cutout down 30 cents to $274.52 and the Select cutout down $1.12 to $267.83.
Feeder cattle
Feeder cattle were lower, with the March contract down 50 cents to $166.22 and the April contract down $1.05 to $170.70.
“After taking a dive lower through Thursday’s close, the feeder cattle contracts aren’t hitting Friday’s market with much aggression as the complex sees the grain contracts trading mildly higher and doesn’t feel as if the technical support is strong enough to regain what Thursday lost,” Stewart wrote.
Corn closed higher, with the March contract up 9 cents to $6.51 and the May contract up 10 cents to $6.50 a bushel.
Kansas: Pratt Livestock in Pratt sold 4,950 head Thursday. Compared to the last auction, feeder steers 700-950 lbs. sold $2-5 higher. Steer calves 400-700 lbs. sold $10-15 higher. Feeder heifers 450-900 lbs. sold $4-10 higher, with the most advance on 5 weights. Benchmark steers averaging 772 lbs. sold between $154-163 and averaged $160.06.
Montana: Billings Livestock in Billings sold 4,095 head Thursday. Compared to the previous auction, steers 500-699 lbs. sold steady, and steers over 700 lbs. sold steady to $10 higher. Heifers under 600 lbs. sold steady to $5 higher, while heifers over 600 lbs. sold $4-8 higher. Benchmark steers averaging 770 lbs. sold between $156-169, averaging $168.29.
Texas: Cattleman’s Livestock in Dalhart sold 3,549 head Thursday. Compared to the last auction, steer and heifer calves under 600 lbs. were firm to $5 higher. Feeder steers over 600 lbs. traded $5-10 higher. Feeder heifers over 600 lbs. were firm to $5 higher. Benchmark steers averaging 704 lbs. sold between $170-171, averaging $170.49. — Charles Wallace, WLJ editor
