Friday markets
The market headed into the weekend on a wave of optimism.
Live cattle futures closed higher, up $1.60 on the October contract to $227.55 and up $1.10 on the December contract to $228.35.
“Not only is the futures market rallying, but thanks to feedlot managers’ dedication and willingness to wait and be patient, some light trade has been noted at $228 in Texas, which is $6 higher than last week’s weighted average,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments. “Traders believed the fed cash cattle market would trade higher this week, and lo and behold, the early tests of the market thus far have been higher indeed.”
Cash trade through the afternoon totaled about 30,000 head. Live steers sold from $220-227, and dressed steers sold from $350-360. Total cash trade for the week was about 45,000 head.
Slaughter through the day totaled about 102,000 head, compared to 98,000 head a week earlier. With tomorrow’s slaughter estimated at 21,000 head, total slaughter for the week is projected at 553,000 head, compared to 535,000 head a week earlier.
Boxed beef prices were mixed on 135 loads. The Choice cutout lost $1.67 to close at $372.31, and the Select cutout gained 43 cents to close at $353.05.
Feeder cattle
Feeder cattle futures were higher, up 25 cents on the December contract to $343.62 and down 5 cents on the November contract to $341.90.
“I must say, I am slightly surprised to see that the feeder cattle contracts are rallying less than a dollar,” Stewart said. “Based on the market’s behavior as of late, one would logically expect the market to be trading much higher with the support its currently seeing. But then again, the spot November contract is trading at its highest level since mid-July.”
The CME Feeder Cattle Index gained $1.22 to close at $342.64.
Corn futures were lower, down 3 cents on the December contract to $4.74 and down 4 cents on the March contract to $4.86. — Anna Miller Fortozo, WLJ managing editor
