Cattle Takes Risk Off Approach into the Weekend

Live cattle futures were feeling pressure on Friday, as contracts were down $1.22 to $2.625 on the day. Cash trade saw some $190 live in the North on Thursday, with $298 sales in the beef, both lower by $3 and $7 on the week. Southern trade kicked off on Friday with $185 sales, which is steady to $2 lower on the week. Feeder cattle futures closed out the Friday session with  $3.95 to $4.95 losses. The CME Feeder Cattle Index was up 37 at $246.71 on August 15. 

Commitment of Traders data indicated spec longs liquidating in the week that ended on August 13 by 8,910 contracts to a net long 44,892 contracts by that Tuesday.

Vice President Harris released part of her economic agenda this afternoon, which included a mention of ban on price gouging for grocery stores. In her event speech in North Carolina, she specifically mentioned ground beef prices were up 50% since prior to the pandemic.  

USDA wholesale Boxed Beef were higher in the Friday PM report. Choice boxes were up 51 cents at $317.45 with Select product 56 cents higher @ $302.59. The Chc/Select spread was thus narrowed to $14.86. USDA estimated this week’s federally inspected cattle slaughter at 602,000 head. That is up 11,000 head from the previous week and 14.735 head below the same week last year.

Aug 24 Live Cattle  closed at $182.800, down $1.250,

Oct 24 Live Cattle  closed at $178.300, down $2.450,

Dec 24 Live Cattle  closed at $178.125, down $2.500,

Aug 24 Feeder Cattle  closed at $242.775, down $3.950,

Sep 24 Feeder Cattle  closed at $239.500, down $4.175,

Oct 24 Feeder Cattle  closed at $235.950, down $4.950,