Live cattle futures ended the week’s last trade day down by 35 cents to $1.02 with soon to expire October down the most. Cash trade picked up later in the week with some Friday catch up sales mostly $152 to $153 in the North. For the week, the South was mostly near $150 with Northern trade mostly $152. Front month feeder cattle futures closed mixed on Friday, with November and Jan going home with losses of as much as 25 cents, and the deferred months gaining less than 15 cents. The Feeder Cattle Index from 10/27 CME was up $1.07 stronger to $175.85.
Commitment of Traders data showed managed money bought 22k contracts and closed 6.4k shorts for the largest single week bull move for the group’s position since data became available in ’06. The 28,423 net long move left the group 65,722 contracts net long in cattle. For feeders, the spec traders were 3k contracts less net short via rotation from short to long.
Wholesale Boxed Beef prices continued higher on Friday with Choice’s 77 cent gain to Select’s $2.58 increase tightening the spread to $28.77. USDA estimated the week’s cattle slaughter at 668k head for the week through Saturday. That is even with the same week last year, though the YTD pace is still up 436k head.
Oct 22 Cattle closed at $150.375, down $1.025,
Dec 22 Cattle closed at $153.000, down $0.425,
Feb 23 Cattle closed at $156.325, down $0.525,
Nov 22 Feeder Cattle closed at $177.875, down $0.250
Jan 23 Feeder Cattle closed at $180.375, down $0.075
On the date of publication, Alan Brugler 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.
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