Cattle Futures Held Back by Beef

Front month live cattle worked lower on Friday with 35 to 82 cent losses. October cattle options expired and the underlying closed ~$1.17 above the cash market. Feeder cattle futures ended the last trade day of the week with triple digit losses. The October 1 Feeder Cattle Index from CME was 58 cents stronger to $142.96. Most cash business was complete through Thursday, USDA reported some cleanup Friday sales at $106 -$109, mostly $107 and $108. The CoT report showed managed money was 62,924 contracts net long in cattle on 9/29. That was 4,925 contracts stronger wk/wk from net new buying. In feeders, managed money funds were 165 contracts more net long at 875 contracts. Wholesale boxed beef prices were lower Friday afternoon, tightening the spread to $11.27. Choice boxes were $218.88, down a dime, and Select boxes were $207.61, down a penny. Weekly federally inspected cattle slaughter was estimated at 665,000 head. That is up 20,000 from the same week in 2019. USDA estimates the YTD slaughter at 24.173 million head, which is still 4.1% lower yr/yr.

--- provided by Brugler Marketing & Management




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