Friday markets
Tyson Foods’ announcement today that it plans to resume the second production shift at its Amarillo, TX, beef plant by next summer may have been reason for the cattle market heading higher today.
Live cattle futures closed higher, with the December contract up $2.15 to $216.20 and the February contract up $2.90 to $220.10.
“Whether traders deemed that the market had had enough downward pressure, or if it’s Tyson’s announcement that broke Monday morning—regardless of the rhyme or reason, it’s refreshing to see the cattle contracts again trading higher,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments. “The reopening of the Amarillo second shift will increase production and hopefully help keep product steadily available to consumers, and fed cash cattle supplies manageable.”
There was no cash trade for the day. On the formula side, a total of 20,100 head averaging 969 lbs. sold for an average of $359.36.
Cash trade for the week ending Nov. 8 totaled 69,555 head. Live steers averaged $210.11, and dressed steers averaged $329.67.
Slaughter through the day totaled about 107,000 head, compared to 104,000 head a week earlier. Total slaughter for a week earlier is projected at 534,000 head, compared to 543,000 head a week earlier.
Boxed beef prices were higher on 69 loads. The Choice cutout gained $1.95 to close at $362.74, and the Select cutout gained 17 cents to close at $353.73.
Feeder cattle
Feeder cattle futures were higher, up $6.02 on the November contract to $328.35 and up $5.80 on the January contract to $324.17.
“So long as the live cattle contracts continue to trade higher, the feeder cattle contracts should be able to maintain their rally through the day’s close,” Stewart said.
The CME Feeder Cattle Index lost $5.35 to close at $337.41.
Corn futures were lower, down 2 cents on the December contract to $4.39 and down 3 cents on the March contract to $4.52.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 on Monday. Compared to a week earlier, at the open, feeder steers and heifers sold steady to $10 lower. A group of benchmark steers averaging 783 lbs. sold for $341.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to a week earlier, feeder cattle and calves were not well tested at the open. Demand was moderate to good. Benchmark steers averaging 728 lbs. sold from $330-342, averaging $339.51.
South Dakota: Sioux Falls Regional in Worthing sold 1,500 head on Monday. Compared to a week earlier, there were too few steer and heifer calves to allow a good comparison. Yearling feeder steers sold with steady to lower undertones, and yearling feeder heifers sold with lower undertones. Benchmark steers averaging 725 lbs. sold from $331-342.50, averaging $336.35. — Anna Miller Fortozo, WLJ managing editor
