Cattle Face Friday Pressure to Close Week of Losses

Live cattle futures faced weakness on Friday, with contracts down 45 cents to $1.30, as October fell $6.20 on the week. Cash trade picked up later on Friday with $222 sales surfacing across the country. The Friday morning Fed Cattle Exchange online auction showed dressed sales of $342 on 40 head, with another set of $223 sales on 174 head. Feeder cattle futures slipped back $1.55 to $1.97 to close Friday, with September down $8.12 this week. The CME Feeder Cattle Index was down another 67 cents on August 27 to $332.80. 

Commitment of Traders data showed managed money trimming another 4,073 contracts from their net long in live cattle futures and options to 57,441 contracts as of Tuesday. In feeder cattle futures and options specs cut back 1,784 contracts from their net long to just 5,714 contracts in the week of August 25.

Early on Friday morning, President Trump posted that “in order to break this powerful (packer) monopoly, with much of its ownership based outside the U.S., I am authorizing legal documents to be drawn in order to allow Farmers and Ranchers to be given the right to PROCESS THEIR OWN FOOD.” Few details were given on what would be done, though trimming back some regulations may be a solution. 

Wholesale Boxed Beef prices were mixed in the Friday PM report, with the Chc/Sel narrowing to $15.15. Choice boxes were down $5.13 at $376.23, with Select $1.89 higher to $361.89. USDA estimated this week’s Federally inspected cattle slaughter at 542,000 head. That is up 19,000 head from the previous week, but 24,581 head below the same week last year.

Aug 26 Live Cattle  closed at $219.250, down $1.050,

Oct 26 Live Cattle  closed at $211.725, down $1.200,

Dec 26 Live Cattle  closed at $213.725, down $1.075,

Sep 26 Feeder Cattle  closed at $320.900, down $1.550,

Oct 26 Feeder Cattle  closed at $316.525, down $1.550,

Nov 26 Feeder Cattle  closed at $309.925, down $1.550,