Markets: Cattle Steady in Light Trade, Futures Post Weekly Gains
Cattle trade was mostly steady in light to moderate trading. Many feedyard managers held out for higher bids but packers were reluctant as wholesale beef prices softened.
Cattle in the North traded at $184 to $185 and $292 dressed, steady to $1 lower live and $2 higher dressed. Trade in the South was not established. Feeder cattle traded mixed at $4 lower to $2 higher while calves sold $2 lower to $6 higher.
Wholesale beef prices moved lower. Choice boxed beef closed Friday at $302.34 per cwt., down $5.23 for the week. Select boxed beef sold at $272.01 per cwt., down $8.11 per cwt. on the week.
Weekly cattle slaughter was estimated at 632,000 head, down 36,000 head from the same week a year ago. The year-to-date total was estimated at 27.389 million head, down 4.6% from last year.
At the CME, December live cattle futures fell 80 cents on Friday to $183.875 and nearer the session low. For the week, December live cattle rose $1.65. January feeder cattle futures fell $2.425 on Friday to $239.75 and nearer the session low. For the week, January feeders rose $4.05.
Analysts said it was a disappointing finish to what was still a good trading week for the cattle futures market bulls. Futures prices weakened Friday despite a big drop in the U.S. dollar index and more upbeat trader and investor attitudes in the general marketplace following a U.S. jobs report that suggested the Federal Reserve may be done in its interest-rate-tightening cycle.
Fed steer weights rose in October despite active feedlot sales through mid-month. The resulting increase in market-ready supplies was offset later in the month by snow and cold weather that likely reduced weight gains and helped to stabilize the cash and futures markets.
