Friday markets
The markets headed into the weekend buoyed higher by stronger cash trade prices and a bullish Cattle on Feed report.
Live cattle futures closed higher. The December contract gained $1.97 to close at $230.40, and the February contract gained $2.40 to close at $230.80.
“Things are heating up in the cattle complex as the live cattle contracts are again pressing up against the market’s 100-day moving average,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade for the day totaled about 3,200 head. Live steers sold for $228, and dressed steers sold from $355-358. Total cash trade for the week so far is about 32,000 head.
Slaughter for the day is estimated at 108,000 head, compared to 105,000 head a week earlier. With tomorrow’s slaughter expected at 7,000 head, total slaughter for the week is projected at 587,000 head, compared to 596,000 head a week earlier.
Boxed beef prices were higher on 98 loads. The Choice cutout gained $4.35 to $361.63, and the Select cutout gained $2.05 to close at $346.02.
USDA released its latest Cattle on Feed report this afternoon. As of Dec. 1, total cattle and calves on feed totaled 11.7 million head, down 2% from year-ago levels. Placements were 11% lower, and marketings were 12% lower—the second lowest for November since reporting began in 1996. Other disappearance totaled 53,000 head.
Feeder cattle
Feeder cattle futures closed several dollars higher. The January contract gained $5.32 to close at $346.15, and the March contract gained $4.80 to close at $339.92.
“The spot March contract is currently trading above its 100-day moving average, seeming to feel well supported since the live cattle contracts are higher, fed cash cattle prices are stronger this week, and hopeful this afternoon’s Cattle on Feed report will be bullish too,” Stewart said.
The CME Feeder Cattle Index gained $1.13 to close at $351.18.
Corn futures were lower, down half a penny apiece on the March and May contracts, closing at $4.43 and $4.51, respectively. — Anna Miller Fortozo, WLJ managing editor
