Live cattle futures saw $7.25 limit losses across most contracts on Monday, with $10.25 expanded limits set for Tuesday. There was some light cash trade picked up on Monday at $208 by the USDA in the Western Corn Belt. Last week’s cash trade was $215-219 in the North, with $220-224 in the South. Feeder cattle futures closed Monday down the $9.25 limit across the board, with expanded limits of $13.25 for Tuesday. The CME Feeder Cattle Index was down $3.34 to $336.38 on November 21. The weekly OKC feeder cattle auction had an estimated 3,302 head for sale, with feeders down $10-20 and calves down $20-40 early.
Late on Friday, Tyson announced that it is planning to close its 5,000 head per day Lexington, NE plant and shift its Amarillo, TX plant to a single full capacity shift. The shutdown isn’t expected until January 20, which limits the immediate impact (i.e. the December and February contracts), but longs want out.
The monthly Cattle on Feed report from Friday showed the October placement total at 2.039 million head, down 10.02% from last year. Marketings during that month were down 8.02% to 1.697 million head. That took the November 1 on feed number to 11.706 million head, a 2.17% drop from last year and near trade estimates.
USDA reported Wholesale Boxed Beef prices lower in the Monday PM report, with the Chc/Sel spread widening to $14.98. Choice boxes were down 99 cents to $370.49, while Select was $1.47 lower at $355.51. USDA federally inspected cattle slaughter for Monday was estimated at 120,000 head. That 4,000 head above last Monday but 2,245 head below the same week last year.
Dec 25 Live Cattle closed at $207.200, down $7.250,
Feb 26 Live Cattle closed at $207.525, down $7.250,
Apr 26 Live Cattle closed at $207.900, down $7.250,
Jan 26 Feeder Cattle closed at $304.975, down $9.250,
Mar 26 Feeder Cattle closed at $297.800, down $9.250,
Apr 26 Feeder Cattle closed at $296.100, 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.
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