Friday markets
“It’s been doggish week for the cattle contracts as lower boxed beef prices added pressure to the marketplace and lower cash cattle trade solidified the weaker mentality,” reported DTN Livestock Analyst ShayLe Stewart. “Rising corn prices and lack of trader support also added stress to the feeder cattle contracts as they have traded lower throughout nearly the entire week.”
Friday negotiated cash trading in Kansas, Nebraska, and the western Corn Belt has been mostly inactive on light demand. Cash trade in the Texas Panhandle has been at a standstill. The last reported market in the Southern Plains was on Wednesday at $108 live. Trade in Nebraska moved at $108 today, and trade in the western Corn Belt moved from $105-107 live and $167-168 dressed.
A total of 6,006 cash cattle sold today compared to last week’s 65,080 head and last year’s 42,860 head. A total of 19,300 formula cattle sold today, weighing 890 lbs. and bringing $173.97. This was the fifth week in a row negotiated cash receipts have totaled over 150,000 head.
Live cattle futures were all red: the October contract was down 62 cents to $107.15, the December contract down 92 cents to $108.62 and the February contract down 95 cents to $111.47.
Boxed beef prices are lower with the Choice cutout down 45 cents to $210.03 and the Select cutout working its way below $200 at $193.52 (-$2.98) on 127 loads. The cow beef cutout was down 84 cents to $165.30. Today’s slaughter is estimated to be thousands of head higher than last week and last year at 116,000 head. Tomorrow’s slaughter is predicted at 62,000 head.
Feeder cattle
“Cattle enthusiasts worry about rising corn prices, this week’s weaker cash cattle market and long-term demand as COVID-19 restrictions hold the foodservice industry hostage,” Stewart said. “With a plethora of calves still left to market this fall, worries about supply heavily outweighing demand grow more and more prevalent.”
The December corn contract was sitting at $4.02 Friday afternoon. Feeder cattle futures were all down, with the October contract down 82 cents to $138.10, November down $1.45 to $135.02 and January down $2.77 to $129.32. The latest Cattle Feeder Index was at $140.91.
Compared to last week, steers and heifers sold steady to $3 lower. The best demand was seen this week on the limited supply of yearlings still out there in the country.
Billings Livestock Commission Cattle Auction in Billings, MT, sold 4,990 head yesterday at the annual NILE Week Feeder Special. Compared to last week, feeder steers 300-500 lbs. sold steady; feeder steers 500-600 lbs. sold steady to $3 higher; feeder steers 600-700 lbs. sold steady to $3 lower. Feeder heifers 300-400 lbs. sold steady; feeder heifers 400-600 lbs. sold 2-3 higher; feeder heifers 600-700 lbs. sold steady; feeder heifers 700-900 lbs. sold $2-3 lower; feeder heifers 900 lbs. and higher sold steady. — Anna Miller, WLJ editor
