Friday markets
Markets are trending higher to close off the weekend, but cash cattle were still slow on light demand.
CME futures were up modestly for both live cattle and feeder cattle. The live cattle October contract was up 43 cents to $105.53, December was up 48 cents to $109.90, and February was up 28 cents to $114.33.
Cash trading in the Texas Panhandle was slow on light demand, as it was in Kansas, Nebraska and the western Corn Belt. Cattle moved mostly at $102, $1 higher from yesterday. In Nebraska and the western Corn Belt, dressed purchases moved from $160-161. A total of 7,953 head traded today, compared to last year’s 11,476.
Cattle on the formula grid continue to be the majority, with a total of 23,600 head trading today at $167.59, weighing 887 lbs.
“Bulls will be calling this week a cash low for the remainder of 2020 but given that seasonal weakness in boxed beef prices will persist into early October and cattle weights are record large, that optimism might be misplaced,” opined Cassie Fish, market analyst, in The Beef. “Perhaps cash cattle prices don’t have dollars more to the downside, but any Q4 rally will likely be lethargic given the fundamentals. “
Boxed beef prices are on their slow trend downward, with 164 loads marking the Choice cutout down almost a dollar to $219.89 and Select down 22 cents to $207.10. Since last week, the Choice cutout has dropped close to $6 and the Select cutout has dropped $2.20.
Feeder cattle
Feeder cattle contracts were also up slightly on the CME. The September contract was up 83 cents to $140, October up nearly a dollar to $140.58, and November up 93 cents to $141.33. The latest known CME Feeder Cattle Index was up 12 cents to $141.10.
“Thankfully the market has been aided not only by the buyer support throughout this week’s sale barn auctions, but also through the additional interest from traders,” Stewart said. “The market’s aggression is still cautious as the stark realities of a weaker cash cattle market, strengthening corn prices and concerns about drought weigh the market’s ability to trade effortlessly higher.”
A total of 119,800 cattle sold this week, compared to last week’s 160,800 and a year ago’s 176,400 head. Steers and heifers sold uneven compared to last week, $2 lower to $2 higher. The day’s slaughter is estimated at 119,000 head, up several thousand from last week and last year. Tomorrow’s slaughter is predicted to be around 95,000 head, also several thousand head up. — Anna Miller, WLJ editor
