Friday markets
The market closed mostly lower heading into the Memorial Day weekend.
Live cattle futures made some small gains, up 15 cents on the June contract to $249.30 and up 25 cents on the August contract to $239.60.
Cash trade for the day totaled about 8,400 head. Live steers sold from $258-262.50, and dressed steers sold from $405-410. Total cash trade for the week so far totals about 46,000 head.
“The crash in futures yesterday unnerved sellers and earlier sales this week at $264-$265 live soon moved to mostly $260 with a few in the north at $258,” the Cattle Report wrote. “Dressed sale fell from early week $415 to $410-$412. The excuses ranged from reduced Memorial Day features using beef to soft box prices to failing consumer demand.”
Slaughter for the day is estimated at 99,000 head, compared to 100,000 head a week earlier. With tomorrow’s slaughter expected at 2,000 head, total slaughter for the week is projected at 528,000 head, compared to 535,000 head a week earlier.
Boxed beef prices were lower on 75 loads. The Choice cutout lost $1.21 to close at $390.27, and the Select cutout lost 65 cents to close at $385.
USDA released its monthly Cattle on Feed (COF) report this afternoon. Cattle and calves on feed as of May 1 totaled 11.6 million head, 2% above last year’s levels. Placements in April totaled 1.70 million head, 6% higher than a year earlier. Marketings in April were 1.64 million head, 10% below last year. Other disappearance totaled 52,000 head, 4% above last year.
“Today’s COF report confirmed what feeder futures have been telling us for two days. EXPECT A SURPRISE IN THE PLACEMENT NUMBER. The actual monthly placement number at 106% is double the pre-release guesses of 103%,” the Cattle Report wrote.
Feeder cattle
Feeder cattle futures nosedived another day, down $6.67 on the August contract to $349.85 and down $6.47 on the September contract to $346.90.
“Walking on egg shells and feeling like the oxygen is slowly being pulled from the air that traders breathe, the feeder cattle contracts are enduring yet another bloodbath Friday as everyone waits to see what Friday’s Cattle on Feed report is going to unveil,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
The CME Feeder Cattle Index lost $1.72 to close at $370.72.
Corn futures were modestly higher, up a penny apiece on the July and December contracts, closing at $4.63 and $4.86, respectively.
The WLJ office will be closed Monday, May 25 in observance of Memorial Day. — Anna Miller Fortozo, WLJ managing editor
