Cash and futures markets suffered a dismal week after multiple factors aligned to erode much of the bullish optimism. Nearby Live Cattle futures declined $10 and produced serious near-term technical damage and suggests more chart-based selling pressure from speculators next week. However, both live and feeder cattle futures markets are heavily short-term oversold and due for corrective bounces.
The North saw trade at $180 to $181 per cwt. in moderate trade, mostly $4 lower. Dressed cattle sold at $287 per cwt., $5 lower. Light trade in the South at $180 to $181 per cwt. was also $4 to $5 lower. Feeder cattle declined $2 to $8 per cwt., and calves traded mixed at $2 higher to $6 lower.
Wholesale beef prices moved lower. Choice boxed beef closed Friday at $300.46 per cwt., down $1.88 for the week. Select boxed beef closed Friday at $267.42 per cwt., down $4.59 for the week. The present Choice-Select grade beef spread is around double the norm for this time of year, which suggests the supply of high-quality beef is still very tight.
At the CME, December live cattle futures fell 17 1/2 cents Friday to $174.175 and hit a five-month low. For the week, December live cattle dropped $9.70. January feeder cattle futures rose $1.50 on Friday to $226.425 and hit a seven-month low early on. On the week, January feeders lost $13.325.
Estimated weekly cattle slaughter was 618,000 head, 52,000 head fewer than the same week a year ago. The year-to-date total was estimated at 28.0 million head, down 4.7% from a year ago.
