Cattle Closes with Limit Losses Nearly Across the Board
Live cattle futures fell the $7.25 limit on Friday, with October the lone contract not locked the limit, but still $5.97 lower. October was $233.75 lower this week. Cash trade settled in at $238-240 this week, with the later action on the lower side of that. The Friday morning Fed Cattle Exchange online auction showed sales on 433 of the 1,646 head offered with at $238-239. Feeder cattle futures were down the $9.25 limit nearly across the board, with October down $9.05. The CME Feeder Cattle Index was back down $3.54 at $367.08 on October 23. Both live cattle ($10.75) and feeder cattle ($13.75) will have expanded limits on Monday.
Other than open interest data, we don’t have a good handle on the current managed money positions with Commitment of Traders data suspended amid the government shutdown. The last couple weeks have likely included a bit of long liquidation in both live and feeder cattle.
Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis.A report late on Thursday suggested the Mexican ag ministry was headed to Washington next week to discuss reopening the border that has been closed to cattle imports due to New World Screwworm.
USDA Wholesale Boxed Beef prices were higher in the Friday PM report, narrowing the Chc/Sel spread to $17.79. Choice boxes were up $2.62 to $375.76, while Select was $3.23 higher at $357.97. USDA federally inspected cattle slaughter for this week was estimated at 573,000 head. That is 6,000 head above last week but 52,186 shy of the same week last year.
Oct 25 Live Cattle closed at $233.750, down $5.975,
Dec 25 Live Cattle closed at $233.925, down $7.250,
Feb 26 Live Cattle closed at $233.425, down $7.250,
Oct 25 Feeder Cattle closed at $354.300, down $9.050,
Nov 25 Feeder Cattle closed at $352.200, down $9.250,
Jan 26 Feeder Cattle closed at $348.175, down $9.250,
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.