Friday markets
“Today’s weakness seems to be stemming from a number of different areas,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Live cattle futures closed lower, down $3.95 on the April contract to $234.57 and down $3.80 on the June contract to $231.47.
“Technically speaking, the market’s 40-day moving average seems to pose as too much of a technical barrier for traders to challenge at this point,” Stewart said. “From a fundamental sense, seeing prices trade $3 lower in the North doesn’t send the market warm and fuzzy feelings either.”
External factors might also be influencing the marketplace.
“Damage to our economy from skyrocketing oil was evident everywhere,” the Cattle Report wrote. “Oil spiked above $92—up almost 40% in the past week. Grains were sharply higher. Transportation costs will jump for all goods and services.
Cash trade for Thursday totaled 49,000 head. Live steers sold from $239-242, and dressed steers sold for $380. Through Thursday afternoon, total cash trade for the week totaled about 51,000 head.
Slaughter for the day is estimated at 88,000 head, compared to 89,000 head a week earlier. With no slaughter expected for tomorrow, total slaughter for the week is predicted to be 521,000 head, compared to 519,000 head a week earlier.
Boxed beef prices were mixed on 65 loads. The Choice cutout gained 33 cents to close at $387.22, and the Select cutout lost $1.66 to close at $378.95.
Feeder cattle
Feeder cattle futures plummeted lower, down $6.97 to $355.62 on the March contract and down $7.37 to $351.62 on the April contract.
“More than anything, the weakness seen in the live cattle complex amid a lower trade in the fed cash cattle market doesn’t give the feeder cattle complex much support to rally around,” Stewart said.
The CME Feeder Cattle Index lost 34 cents to close at $368.59.
Corn futures were higher, up 5 cents on the March contract to $4.47 and up 7 cents on the May contract to $4.60. — Anna Miller Fortozo, WLJ managing editor
