Friday markets
The day began with promise in the market, and while futures ultimately faded into mostly lower numbers on the board, cash trade provided a bright spot, reaching $201.
Live cattle futures were mixed, up 45 cents on the February contract to $194.05 and down 5 cents on the April contract to $196.
Cash trade for the day was substantial at more than 45,000 head. Live steers sold from $195-201, and dressed steers sold from $312-320. Cash trade for the week so far is about 70,000 head.
“The packers’ problem coming into this week was one of owning inadequate inventory to supply scheduled slaughter schedules and now as this week comes to a close, that problem appears to be only partially resolved,” wrote Cassie Fish, market analyst, in The Beef. “What has paying up sharply gotten the packer in terms of strengthening his inventory position?”
Slaughter for the day is estimated at 121,000 head. With tomorrow’s slaughter projected at 27,000 head, total slaughter for the week is expected to be about 498,000 head, compared to last week’s 434,000 head.
Boxed beef prices were higher on 149 loads. The Choice cutout gained $1.76 to close at $325.24, and the Select cutout gained $2.49 to close at $296.72.
“The wholesale beef market rally is not enough to offset higher cattle costs and packer margins remain mired in red ink,” Fish said. “So far any of the adjustments the packer has made to production schedules have been too little too late.”
The latest export report showed beef net sales of 1,400 metric tons, up 29% from the week prior but down 71% from the prior four-week average.
Feeder cattle
Feeder cattle futures saw some losses, down $1.65 to $264.82 on the January contract and down $2.02 to $264.17 on the March contract.
The CME Feeder Cattle Index gained $3.99 to close at $265.76.
Corn futures were down 8 cents to $4.50 on the March contract and down 9 cents to $4.58 on the May contract. — Anna Miller, WLJ managing editor
