Friday markets
USDA released its latest Cattle on Feed report this afternoon, once again showing lower numbers from a year earlier.
Live cattle futures closed lower, down 92 cents on the February contract to $246.57 and down $1.42 to close at $242 on the April contract.
“Historically, fed cattle prices peak in the April timeframe for the year,” the Cattle Report wrote. “The past two years have contradicted that pattern as prices continued to advance into the summer months. This year the April live cattle contract continues to sell discount to the current cash and expiring February contract.”
Cash trade finally took place today, with about 27,000 head sold. Live steers sold from $242-247, and dressed steers sold from $380-388.50. Total cash trade for the week through Friday afternoon was about 29,000 head.
Slaughter for the day is estimated at 89,000 head. With no slaughter expected for tomorrow, total slaughter for the week is projected at 516,000 head, compared to 541,000 head last week.
Boxed beef prices were higher on 106 loads. The Choice cutout gained $1.53 to close at $366.70, and the Select cutout gained 95 cents to close at $360.74.
USDA released its latest Cattle on Feed (COF) report this afternoon. As of Feb. 1, the number of cattle and calves on feed was 2% lower than a year earlier. Placements were 5% lower, and marketings were 13% lower. Total disappearance was 8% lower.
“There is little to surprise in the monthly COF report and following the close of futures and the release of the report, packers entered the cash market starting bids at $246 that were quickly passed,” the Cattle Report wrote.
Feeder cattle
Feeder cattle futures closed lower over the day. The March contract lost $2.25 to close at $368.02, and the April contract lost $2.60 to close at $365.05.
“Unless the direction of the live cattle contract’s change, it’s unlikely that the feeder cattle contracts will find much more support ahead of the afternoon’s close, even though demand is strong for calves and feeders and the Cattle on Feed report is expected to be bullish,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
The CME Feeder Cattle Index gained 90 cents to close at $376.92.
Corn futures traded mostly sideways, up a penny on the March contract to $4.27 and up 3 cents on the May contract to $4.39. — Anna Miller Fortozo, WLJ managing editor
