Cash Cattle Higher in All Regions, COF 1% Higher
Cash fed cattle rallied $1 to $2 across all regions this week, but the cloud of unexpected bearish news in Friday’s Cattle on Feed report will likely hang over the market when trading starts on Monday.
Cattle traded in the North at $186 to $187 per cwt., $1 to $2 higher; and $294 per cwt. dressed which is $2 higher. Cattle trade in the South was called moderate at $184 to $185 per cwt., also $1 to $2 higher. Feeder cattle traded steady to $4 lower while calves sold mixed at $4 lower to $2 higher.
Wholesale beef prices improved throughout the week. Choice boxed beef closed Friday at $305.38 per cwt., up $4.58 for the week. Select boxed beef closed Friday at $278.70 per cwt., up $3.21 for the week.
Estimated weekly cattle slaughter totaled 638,000 head, down 37,000 head from a year ago. Year-to-date slaughter was estimated at 26.122 million head, down 4.6% from a year ago.
December live cattle futures closed down 67 1/2 cents Friday to $184.625 and near the session low. For the week, December live cattle fell $2.125. November feeder cattle futures lost $2.275 to $242.225 and near the session low on Friday. Prices hit a nearly four-month low and for the week dropped $9.35.
The late-week slump in cattle futures that included technically bearish weekly low closes Friday set the stage for follow-through technical selling pressure early next week. Trader and investor risk sentiment in the general marketplace deteriorated late this week, which was also a negative for the cattle markets. It’s likely that risk aversion will remain keener early next week, which is not a good scenario for already technically weak cattle futures.
Cattle on Feed
Cattle on feed in feedlots with 1,000 head or more totaled 11.6 million head on October 1, up 1% from the same month last year. This is the second highest October 1 inventory since the series began in 1996.
Feedyard placements totaled 2.21 million head, 6% more than October 2022. Marketings totaled 1.66 million head, 11% below last year on one less business day.
The placement number for September was above most pre-report expectations, while the marketings number fell near analysts expectations. Kansas and Texas recorded the largest year-over-year placement increases at 60,000 and 55,000 head, respectively.
