Cattle Lower on Friday

Front month live cattle futures ended the session with 2 to 70 cent losses in the front months. October closed up 17 cents, which is ~$0.87-1.87 premium to cash 3 weeks ahead of expiration. Feeders were also lower on Friday, closing down by $0.97 to $1.07. The CME Feeder Cattle Index was down 68 cents to $141.92 on 10/8. Cash trade picked up on Friday, especially in the South. USDA reported sales from $104 to $110 on Friday, with the bulk at $109. WTD sales were mostly $107-$109, and $170 in the beef. USDA released the monthly estimate for 2020 beef production. The October update is 90 million lbs higher for a 27.138 billion lb total. 2021 production is forecasted at 27.365 billion lbs. The CoT report showed managed money funds reduced their live cattle net long 3,908 contracts to 59,016 by the way of long liquidation. Feeder cattle spec traders were net sellers on the week ending 10/6, which flipped their net position short. Wholesale boxed beef prices were lower again on Friday. Choice boxes were $1.94 lower; but a $3.28 drop in select widened the spread to $14.24. The week’s FI cattle slaughter is estimated at 637,000 head through Saturday. That is 11k head below the same week a year ago.

Oct 20 Cattle closed at $109.875, up $0.175,

Dec 20 Cattle closed at $112.600, down $0.025,

Feb 21 Cattle closed at $114.300, down $0.700,

Oct 20 Feeder Cattle closed at $138.250, up $0.200

Nov 20 Feeder Cattle closed at $135.525, down $0.925

Jan 21 Feeder Cattle closed at $134.000, down $0.975

--- provided by Brugler Marketing & Management

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