Friday markets
The cattle market sank lower today to close out the end of the month and quarter thanks to a bullish USDA corn report. Futures headed downward, although cash trade held steady even amid lower futures.
Live cattle futures took a dip today. The October contract lost 85 cents to close at $143.27, and the December contract lost 72 cents to close at $147.05.
Cash trade for the day was about 4,755 head through Friday morning. Live steers sold from $140-148, averaging $146.70. Dressed steers sold from $226-228, averaging $227.62. On the formula side, a total of 25,900 head averaging 872 lbs. sold for an average of $232.62.
“Fed cattle prices this week have held steady despite the futures sell-off and 93k head have traded as of this morning, impressive on the heels of last week’s 117k,” Cassie Fish, market analyst, wrote in The Beef. “Tighter fed cattle supplies are coming in October and that tightness will intensify as the quarter wears on. Cash cattle prices will increase in value and make highs for 2022 in the coming months.”
Slaughter for the day is estimated at 115,000 head. With tomorrow’s slaughter projected at 42,000 head, total slaughter for the week should be about 664,000 head.
Boxed beef prices were mixed another day. The Choice cutout lost $2.33 to close at $243.75, and the Select cutout gained 35 cents to close at $220.13.
“A smaller production schedule this week—estimates are for 650k at best—combined with smaller harvests going forward for months, not weeks, will put a bottom in the boxes,” Fish said. “Demand seasonally improves in Q4 compared to September.”
Feeder cattle
“A bullish USDA corn report was released this morning, sending corn prices soaring and feeder cattle futures back on their heels once again,” Fish said. “Technically, feeders still could have bottomed yesterday but today’s losses are certain to gut-check bottom pickers.”
Feeder cattle futures sank several dollars lower today. The October contract lost $3.15 to close at $174.17, and the November contract lost $3.20 to close at $174.62.
The CME Feeder Cattle Index lost 48 cents to close at $175.46.
Corn futures saw some gains, with the December and March contracts each up 8 cents, closing at $6.77 and $6.84, respectively.
South Dakota: Hub City Livestock Auction in Aberdeen sold 4,629 head on Wednesday. Compared to last week, the best test on steers were 800-850 lbs. and 951-1,000 lbs., which sold $2-4 lower. 851-950 lbs. sold $6-8 lower, and 1,001-1,050 lbs. sold steady to $3 lower. The best test on heifers was 850-900 lbs., which sold steady to $3 lower, and 901-950 lbs. and 1,000-1,050 lbs. sold mostly steady. — Anna Miller, WLJ managing editor
