Feeder Cattle Futures Market News and Commentary
Feeder cattle led the way lower on Friday with losses of as much as $3.20 in the November contract. Fat cattle futures went home with 32 to 85 cent losses as well. For the week, October fats gave back 0.68% and October feeders closed 2.3% lower. USDA called the bulk of Southern cash trade as $143 for the week, consistent with last week, and the bulk of Northern trade at $144-145. The 9/28 CME Feeder Cattle Index dropped $1.52 to $175.94.
The weekly Commitment of Traders report showed managed money firms were closing longs and adding new shorts for a net 11,148 contract lighter net long of 62,075 contracts. That was a 3-week low. In feeder cattle, CFTC had managed money firms 4,040 contracts more net short to 6,456 contracts.
Wholesale Boxed Beef prices from the Friday afternoon report showed a $2.33 drop in Choice to $243.75 cwt. (with ribs now below the $400 mark) and a 35 cent bounce to Select to $220.13. USDA estimated the week’s cattle slaughter under federal inspe... Read more