Feeder cattle were down by another triple digits of 0.7% to 1% on Friday. That left November futures at a net $9 loss for the week and more than 38% back down from LoC low to LoC high. Live cattle also closed red on the week’s last trade day, finishing 12c to $1.25 lower across the front months. December futures ended the week on a net $2.12 loss. October futures expire next Thursday, with no deliveries issued and 4.1k contracts of OI as of 10/19. USDA mentioned Thursday’s cash trade in KS was near $184 and mostly $186 ($294 dressed) for NE. The CME Feeder Cattle Index was another 84c weaker to $243.99 for 10/19.
Weekly CoT data showed managed money firms were closing cattle longs during the week that ended 10/17. That reduced their net long by 2.5k contracts to 83.8k. The funds were 6,516 contracts net long in feeders on 10/17. That was an 836 contract weaker net long through the week.
The monthly Cattle on Feed update had 11.58m head of cattle in 1,000+ capacity feedlots on October 1st. That was 0.6% above Oct ’22, compared to the pre-report expectations for a 0.3% drop. Sep placements were 2.206m head, up by a shocking 6% from Sep ’22, and up 10% from August. The average trade guess was to see a 0.8% yr/yr increase. NASS had marketings at 1.663m head for Sep, down 10.6% yr/yr and near the trade estimates. The report updated the heifer ratio in feedlots, showing 40%, which is up from 39.75% last year.
USDA’s afternoon Wholesale Boxed Beef report showed Choice boxes at $305.38 and Select boxes at $278.70. For choice that was back up by $1.26, as Select increased by $1.22. USDA reported the week’s beef production was 527.8m lbs, up 3.5% for the week but 6.1% below the same week last year. FI cattle slaughter was listed at 638k head for the week, up 3.4% from last week but 5.5% below the same week last year. The YTD slaughter was marked at 26.122m head, trailing last year’s 27.373m head pace.
Oct 23 Cattle closed at $184.275, down $0.125,
Dec 23 Cattle closed at $184.625, down $0.675,
Feb 24 Cattle closed at $187.725, down $1.225,
Oct 23 Feeder Cattle closed at $241.825, down $1.750
Nov 23 Feeder Cattle closed at $242.225, down $2.275
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. For more information please view the Barchart Disclosure Policy here.
