Friday markets
Cattle futures surged to close the week on a high note, fueled by strength in cash trade.
Live cattle futures were several dollars higher, up $2.97 to $222.20 on the August contract and up $2.62 to $219.70 on the October contract.
“What a day, what a day, what a day!” ShayLe Stewart, DTN livestock analyst, exclaimed in her midday comments. “Upon seeing some light trade finally develop in the fed cash cattle market, traders took one look at what the prices were of the cash market and opted to shoot the live cattle contracts mostly $2.00 to $3.00 higher.”
USDA did not release its final afternoon cash trade report by WLJ press time.
“From a sheerly fundamental aspect, the power in this week’s fed cash cattle market far outweighs the bearish note of the seasonal decline in boxed beef prices, which is why traders are willing to propel the contracts higher,” Stewart said.
Slaughter for the day is estimated at 101,000 head. With tomorrow’s slaughter projected at 3,000 head, total slaughter for the week is predicted at 568,000 head, compared to 604,573 head a year ago.
Boxed beef prices were lower on 138 loads. The Choice cutout lost $6.02 to $378.64, and the Select cutout lost $4.37 to $366.49.
Feeder cattle
“Buyers have aggressively been procuring calves in auctions throughout the countryside, but upon seeing the fed cash cattle market trade higher—the feeder cattle complex grabbed another bullish factor and opted to continue to trade higher,” Stewart said.
Feeder cattle futures were also several dollars higher. The August contract gained $4.05 to close at $325.32, and the September contract gained $4.17 to close at $325.40.
The CME Feeder Cattle Index gained $5.08 to close at $321.84.
Corn futures were modestly lower, down 4 cents to $4.03 on the July contract and down 3 cents to $3.96 on the September contract. — Anna Miller Fortozo, WLJ managing editor
