Friday markets
Cattle futures finished the week lower as they were pressured by lower cash trade.
Live cattle futures closed lower, with the December contract down 35 cents to $214.05 and the February contract 42 cents lower to $217.20.
Cash trade was moderate, with 6,958 head sold. Live cattle sold for $208-215, and dressed steers sold between $325-330. On the formula side, 24,900 head averaging 959 lbs. sold for an average of $358.63.
“Some more light trade has been noted in Nebraska at $210, but otherwise the market remains quiet, and it’s looking like the bulk of this week’s trade is essentially done with,” ShayLe Streart, DTN livestock analyst, wrote in her midday comments. “So far this week, Southern live cattle have traded at mostly $218, which is $6 lower than last week’s weighted average, and Northern dressed cattle have traded at mostly $340, which is $8 to $25 lower than the previous week’s weighted average.”
Today’s slaughter is estimated to be 96,000 head, 3,000 head above last week. Saturday’s slaughter is projected to be 11,000 head, bringing the weekly estimated total to 534,000 head.
Boxed beef prices were mixed on 116 loads, with the Choice cutout down 77 cents to $360.79 and the Select cutout $1.24 higher to $353.56.
“The weekly slaughter continues to reflect improving plant utilization, which translates into better margins for the processors,” the Cattle Report wrote. “Box prices seem to have found a trading level balanced with a weekly slaughter volume of 540,000+ head. Cow slaughter continues to increase weekly but remains under the prior year. Processors have maintained profitability since July—the longest period during the past few years.”
Feeder cattle
Feeder cattle futures continued their slide, with the November contract down $2.72 to $322.32 and the January contract $1.95 lower to $318.37.
“This lower trend is expected to continue until something worthwhile develops fundamentally in the cattle complex, which will likely either be strong trade in the fed cash cattle market or a bullish Cattle on Feed report—time will tell,” Stewart wrote.
The CME Feeder Cattle Index was down $3.82 to $342.76.
Corn futures closed higher, with the December contract up a penny to $4.41 and the March contract up a fraction to $4.55.
Kansas: Winter Livestock in Pratt sold 2,033 head on Thursday. Compared to the last auction, feeder steers 600-900 lbs. and heifers 400-975 lbs. sold $4-12 lower. Steer calves 300-600 lbs. and heifer calves 300-400 lbs. sold $4-35 higher. Benchmark steers averaging 773 lbs. sold for $327-342, averaging $331.84.
Nebraska: Valentine Livestock in Valentine sold 1,990 head on Thursday. Compared to the last auction, steers 500-650 lbs. traded sharply lower, with no comparable heifer offerings. Benchmark steers averaging 701 lbs. sold for $351-361, averaging $356.
South Dakota: Mobridge Livestock in Mobridge sold 4,114 head on Thursday. Compared to the last auction, steer calves 450-499 lbs. were mostly steady, and 500-649 lbs. traded $20-30 lower. Heifer calves 450-499 lbs. sold $20-26 lower, and 500-549 lbs. were mostly steady. Benchmark steers averaging 701 lbs. sold $341. — Charles Wallace, WLJ contributing editor
