Thursday markets
“A bearish mindset has taken over the market as traders are leery of supporting the livestock contracts and consequently the markets are scaling lower,” reported DTN Livestock Analyst ShayLe Stewart.
CME cattle futures are in a free fall. The October live cattle contract settled at $103.32 ($-0.32) and the December contract at $103.47 ($-1.10).
As of Thursday afternoon, 480,000 head had been slaughtered. This was 4,000 head more than the week prior and 8,000 head more the same time last year. Today’s slaughter was predicted at 120,000 head, on trend with last week.
Boxed beef prices were up higher, remaining above usual seasonal averages. The Choice cutout was at $208.86 and the Select cutout was at $191.08. Cassie Fish of The Beef reported “there will be a seasonal holiday rally for boxed beef prices heading into December, though whether we reach the level saw in August of $231 remains to be seen.
“‘Normally’ the late November/early December high would exceed that high, but 2020 is anything but normal,” she remarked. “Will a boxed beef rally help cash or futures? Given how oversold futures are becoming, it’s likely. But from what price level no one knows.”
Feeder cattle
Stewart reported calves continued to sell at lower prices as supply continues to outweigh demand and rising corn prices cause buyers to step back and keep break-even prices in check. The closing price for December corn today was at $4.16. Just four weeks prior, corn was at $3.65.
Stewart also reported calves without a vaccination program and haven’t been long-weaned sold 8-12 cents lower than last week.
Feeder cattle futures were mostly red all week, with the October contract closing at $133.82 ($-0.57) and the November contract at $130.42 ($-0.72). The CME Feeder Cattle Index was down $2.83 to $135.53
Sheridan Livestock Auction in Rushville, NE, sold 4,477 head yesterday. Compared to last week, steers sold steady to $5 lower, except 500-lb. steers sold $10 lower. Heifer calves sold $2-7 lower. Demand was moderate to good. Steers averaging 723 lbs. sold between $138-148, averaging $145.48. — Anna Miller, WLJ editor
