Cattle Collapse Heading into the Weekend
Live cattle futures fell 80 cents to $2.125 on Friday, as the Boxed Beef values continue to slip lower. December was down $2.22 on the week. Cash trade this week settled in with Northern sales of $186-188 and Southern action at $187. This morning’s Central Stockyards Fed Cattle Exchange showed no sales on the 3,044 head offered and bids ranging from $185-187.50. Feeder cattle futures were down $1.67 to $2.90 to close out Friday, as November was down $1.45 this week. The CME Feeder Cattle Index was down 6 cents at $249.86 on November 7.
CFTC data showed specs in live cattle futures and options trimming back 731 contracts from their net long to 97,838 contracts by November 5. Managed money in feeder cattle futures and options were increasing their net long position by 2,414 contracts to 11,374 contracts by Tuesday.
USDA wholesale Boxed Beef prices were lower again in the Friday afternoon report. Choice boxes were down $1.53 to $307.93/cwt, with Select 53 cents lower @ $279.19. The Chc/Sel spread narrowed to $29.74. USDA estimated the weekly federally inspected cattle slaughter at 619,000 head. That is 4,000 head above the previous week but down 3,952 head from the same week last year.
Dec 24 Live Cattle closed at $183.700, down $2.125,
Feb 25 Live Cattle closed at $185.300, down $2.125,
Apr 25 Live Cattle closed at $186.525, down $1.725,
Nov 24 Feeder Cattle closed at $245.425, down $2.225,
Jan 25 Feeder Cattle closed at $241.425, down $2.900,
Mar 25 Feeder Cattle closed at $239.375, down $2.875,
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.