Friday markets
“After Thursday’s blood bath, the livestock contracts were sheepish in how they approached Friday’s market, but upon thorough evaluation, traders have deemed it safe and are now letting the feeder cattle and lean hog contracts trade slightly higher, but the live cattle contracts aren’t as confident,” summarized ShayLe Stewart, DTN livestock analyst, in her midday comments today.
Live cattle futures were mixed. The June contract gained 42 cents to close at $132.07, and the August contract lost 42 cents to close at $132.35.
There was a small amount of cash trade to round out the week, with 1,120 head sold. Live steers sold from $143-144, and dressed steers sold for $228. Total cash trade for the week will be about 85,000 head.
“This week’s movement hasn’t amounted to much compared to the last three weeks’ worth of trade, and all eyes will be looking for Monday’s report to see exactly how many cattle traded,” Stewart said.
On the formula side, a total of 29,600 head averaging 841 lbs. sold for an average of $227.58.
Slaughter for the day is estimated at 120,000 head. With tomorrow’s slaughter expected at 42,000 head, slaughter for the week is likely to be about 657,000 head, on pace with last week.
Boxed beef prices were mixed on 92 loads. The Choice cutout gained $1.75 to close at $258.95, and the Select cutout lost 46 cents to close at $243.90.
Feeder cattle
Feeder cattle futures were able to scale higher today amid lower corn. The May contract gained $1 to close at $157.87, and the August contract gained $1.50 to close at $168.02.
The CME Feeder Cattle Index lost 25 cents to close at $156.36.
Corn futures suffered a setback, down below $8. The May contract lost 19 cents to close at $7.94, and the July contract lost 10 cents to close at $7.81.
“Come the first part of June, the market will see some of the industry’s biggest auction houses hosting their early summertime sales and we’ll begin to get a better understanding of what feeder cattle prices are going to bring this fall,” Stewart said.
Oklahoma: Woodward Livestock Auction in Woodward sold 2,920 head on Thursday. Feeder steers sold steady to $3 lower, and feeder heifers sold $2-4 lower. Steer and heifer calves were lightly tested, with a lower undertone noted. Benchmark steers averaging 776 lbs. sold between $151-159.25, averaging $155.76. — Anna Miller, WLJ managing editor
