Friday markets
The market traded mostly lower over the day, with numbers down on the board, and cash trade limited.
Live cattle futures closed lower. The December contract lost $2.12 to close at $183.70, and the February contract lost $2.12 to close at $185.30.
“Friday’s lower break thankfully remains above the market’s 100-day moving average, but all in all it isn’t that surprising the market is trading lower given that cash prices are developing $2 to $3 lower than last week’s weighted average and boxed beef prices are trending lower, too,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade finally found some movement over the past day, with 21,000 head sold through this afternoon. Live steers sold from $185-188, and dressed steers sold from $290-298. Total cash trade for the week so far is about 38,000 head.
Slaughter for the day is estimated at 116,000 head. With tomorrow’s slaughter projected at just 9,000 head, total slaughter for the week is expected to be 619,000 head, compared to 615,000 head a week earlier.
Boxed beef prices were lower on 151 loads. The Choice cutout lost $1.53 to close at $307.93, and the Select cutout lost 53 cents to close at $279.19.
“Packers will do their best to hang on to black ink or at least limit the amount of red ink,” wrote Cassie Fish, market analyst, in The Beef. “This week’s slaughter could end up as low as 608k rather than 610k to 615k.”
Feeder cattle
Feeder cattle futures closed lower. The November contract lost $2.22 to close at $245.42, and the January contract lost $2.90 to close at $241.42.
“Friday’s lower dive in the spot January contract does push the contract back below its 40-day and 100-day moving averages, which typically means the market is in a weaker trend,” Stewart said.
The CME Feeder Cattle Index lost 6 cents to close at $249.86.
Corn futures were higher. The December contract gained 3 cents to close at $4.31, and the March contract gained 3 cents to close at $4.44. — Anna Miller, WLJ managing editor
