Friday markets
“It was a pitiful day for the livestock complex as traders grew frustrated with the market and its lack of fundamental support, which led to the contracts ending the day lower,” wrote ShayLe Stewart, DTN livestock analyst, in her closing comments.
Live cattle futures sank lower. The October contract, on its last day, lost $3.27 to close at $224, and the December contract lost $5.35 to close at $220.95.
“With a lack of fundamental support, the live cattle contracts waived their white flag, tucked their tails and ran lower through Friday’s end and into the weekend,” Stewart said.
Cash trade for the day totaled about 11,000 head. Live steers sold from $218-225, and dressed steers sold for $345. Total cash trade for the week through the afternoon totaled about 67,000 head.
“If more trade doesn’t develop later this afternoon, that would be two weeks in a row now of packers buying extremely few cattle in the fed cash cattle market,” Stewart said. “Which could potentially leave them bought for the upcoming week.”
Slaughter through the day is estimated at 96,000 head, on pace with last week. With tomorrow’s slaughter expected at 13,000 head, total slaughter for the week is projected at 543,000 head, compared to 546,000 head a week earlier.
Boxed beef prices were mixed on 126 loads. The Choice cutout lost $2.62 to close at $364.66, and the Select cutout gained 35 cents to close at $351.98.
Feeder cattle
Feeder cattle futures nosedived lower. The November contract lost $8.70 to close at $337.77, and the January contract lost $10.17 to close at $331.77.
“Daily feeder cattle contract moves of up to $10 can increase volatility and significantly raise risk exposure and marketing costs. And that’s exactly what the market did today,” Stewart said. “So why the big decline, you ask? Good question, because shouldn’t a $10 decline be justified by some earth-shattering development? Well, that wasn’t the case today. Traders were frustrated with the market’s lack of fundamental support and let the contracts sink lower ahead of the weekend.”
The CME Feeder Cattle Index gained 43 cents to close at $351.43.
Corn futures also closed lower. The December contract lost 3 cents to close at $4.47, and the March contract also lost 3 cents to close at $4.61. — Anna Miller Fortozo, WLJ managing editor
