Noise, Uncertainty Drag on Cattle Markets
Chaos and uncertainty in the political arena and financial markets were enough to overcome the persistently bullish fundamentals of the cattle market this week. Government reports indicated the economy and employment rate continue to surprise analysts leading to further worries about inflation. The financial markets and cattle futures both rebounded on Friday, but it was too little too late for cash cattle prices.
Trade in the North was called moderate at $182 to $184 per cwt. live and mostly $289 dressed, steady to $2 lower live and $1 lower dressed. The South also saw moderate trade at $182 to $182.75 per cwt., steady to $1 lower on the week.
Feeder cattle were called $1 to $4 lower and calves mostly $6 lower.
December live cattle futures rose $1.30 on Friday to $186.675 and nearer the session high. For the week, December live cattle lost $1.25. November feeder cattle futures rose 57 1/2 cents to $250.875 on Friday and near the daily high after hitting a 2.5-month low early on Friday. For the week, November feeders fell $4.025.
Wholesale beef prices rebounded on Friday and Choice finished the week higher. Choice boxed beef closed Friday at $302.01 per cwt, up $4.25 per cwt. from Thursday’s close and up $1.23 per cwt. for the week. Select boxed beef closed Friday at $275.78 per cwt., down $0.26 per cwt. for the week.
Estimated weekly cattle slaughter was 628,000 head, down 41,000 head from the same week a year ago. The year-to-date total was estimated at 24.868 million head, down 4.5% from last year.
Traders still believe persistently bullish market fundamentals will limit losses in the near term, but live cattle and feeder futures need to show some decent follow-through buying strength early next week to support ideas futures markets have put in near-term price bottoms.
