Friday markets
“Unfortunately, that’s sometimes how ‘the cookie crumbles’ when the market’s technical influence has more power than its fundamentals do,” wrote ShayLe Stewart, DTN livestock analyst, reacting to the volatile trade today as cattle futures closed mixed.
“More than anything, the last two days have been a prime example of algorithm trading, which can lead the market in the exact opposite direction compared to what the market’s fundamental influences would encourage,” Stewart continued.
Live cattle futures were lower, with the June contract down $1.15 to $248.90 and the August contract $1.80 lower to $244.10.
Cash trade was moderate, with 7,685 head sold. Live steers sold for $257.50-260, and dressed steers for $405.
On the formula side, 19,600 head averaging 939 lbs. sold for an average of $403.
Today’s slaughter is estimated to be 92,000 head, 2,000 lower than last week. Saturday’s slaughter is projected to be 13,000 head, bringing the estimated weekly total to 527,000 head.
Boxed beef prices were higher on 120 loads, with the Choice cutout up $1.45 to $388.39 and the Select cutout 59 cents higher to $385.01.
Feeder cattle
Feeder cattle futures closed mixed, with the May contract up $1.05 to $367.37 and the August contract $1.95 lower to $364.22.
The CME Feeder Cattle Index was down $2.90 to $372.29.
Corn futures closed higher, with the May and June contracts 3 cents higher to $4.56 and $4.71, respectively.
Kansas: Winter Livestock in Pratt sold 4,914 head on Thursday. Compared to the last auction, feeder steers 650-1,000 lbs. sold $6-12 lower. Feeder heifers 600-975 lbs. sold $4-12 lower,
with front-end heifers selling close to steady. There were not enough steers and heifers under 600 lbs. for a market test. Benchmark steers averaging 762 lbs. sold for $350-368, averaging $362.82.
Nebraska: Valentine Livestock in Valentine sold 5,880 head on Thursday. An accurate comparison could not be made due to a lack of recent auctions. However, a higher undertone was noted on most weights. Benchmark steers averaging 726 lbs. sold for $421-449, averaging $442.31.
North Dakota: Napoleon Livestock in Napoleon sold 2,483 head on Thursday. Compared to the last auction, feeder steers 600-650 lbs. and 750-800 lbs. sold $10-11 higher, with instances up to $22 higher. Feeder heifers 550-600 lbs. sold $2 lower and 650-700 lbs. traded $1 higher. Benchmark steers averaging 774 lbs. sold for $382.50-419, averaging $407.71.
Texas: Cattlemen’s Livestock in Dalhart sold 1,550 head on Thursday. There were few comparable sales on feeders to determine a trend, but a definite softer undertone was noted. Benchmark steers averaging 795 lbs. sold for $368-380, averaging $369.31. — Charles Wallace, WLJ contributing editor
