Friday markets
The markets rounded out the week with lower futures but higher volumes of cash trade and slaughter than seen in earlier weeks.
Live cattle futures were mixed today. The October contract gained $2.87 to close at $127.37, and the December contract lost $1.05 to close at $129.27.
There was a bit of cash trade today, with 1,246 head sold. There were not enough live purchases for a market trend, but dressed steers averaged $200. This week is looking to have a substantial amount of cash trade, maybe about 100,000 head. On the formula side, a total of 23,100 head sold today, averaging 870 lbs. and $200.12.
Slaughter for the day is estimated at a whopping 120,000 head, bringing the week’s total to 608,000 head. If Saturday’s slaughter stays on track for the projected 60,000 head, we may have a 668,000 head kill week.
“Holiday demand for Thanksgiving and Christmas could see beef playing a more prominent role at the center of the plate,” remarked The Beef. “Retailers, who lagged beef price increases going up, now are lagging recent decreases moving down. This may enable them to feature a few specials at lower prices.”
Boxed beef prices were slightly higher, with the Choice cutout up 83 cents to $285.72 and the Select cutout up 73 cents to $263.37. The Choice/Select spread closed at $22.35.
Feeder cattle
Feeder cattle futures saw losses today. The November contract lost $1.07 to close at $156.57, and the January contract lost $1.45 to close at $156.12. The CME Feeder Cattle Index gained 92 cents to close at $155.88.
Corn futures saw some slight gains. The December contract gained 5 cents to close at $5.68, and the March contract gained 5 cents to close at $5.76.
“The recent jolt in the corn market has set the feeder cattle contracts back on their heels as buyers try to gauge how much more upside the corn market truly has,” remarked ShayLe Stewart, DTN livestock analyst. “Outrageous input costs will be what our children and grandchildren remember hearing about when we talk about 2021 in retrospect.”
South Dakota: The Mobridge Livestock Exchange in Mobridge sold 6,041 head Thursday. Compared to the Tuesday sale, steer calves 400-500 lbs. sold $5-10 higher, and 501-700 lbs. sold mostly steady, with instances up to $4 higher on 600-650 lbs. Heifer calves 400-450 lbs. sold mostly steady, 451-550 lbs. sold $2-5 lower and 551-600 lbs. sold mostly steady. Benchmark steers averaging 615 lbs. sold between $162-180.50, averaging $174.28. — Anna Miller, WLJ managing editor
