Cattle Traders Look to React to CoF Report and Tyson Shutdown News

Live cattle futures saw Friday losses of 27 to 62 cents, with the weekly loss taken to $4.70 in December. A few cash sales in the north were reported at $215-219 last week, with most on the higher side of that range, and $222-224 in the South. Feeder cattle futures were $1.20 to $215 lower on Friday after a back and forth session, as January was down $6.32 on the week. Preliminary open interest slipped 1,279 contracts on Friday. The CME Feeder Cattle Index was up $1.44 to $339.72 on November 20.

The monthly Cattle on Feed report from Friday showed the October placement total at 2.039 million head, down 10.02% from last year. Marketings during that month were down 8.02% to 1.697 million head. That took the November 1 on feed number to 11.706 million head, a 2.17% drop from last year and near trade estimates.

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Later on Friday, Tyson announced that it is planning to close its 5,000 head per day Lexington, NE plant and shift its Amarillo, TX plant to a single full capacity shift.

USDA reported Wholesale Boxed Beef prices higher in the Friday PM report, with the Chc/Sel spread narrowing to $14.50. Choice boxes were up 20 cents to $371.48, while Select was $2.80 higher at $356.98. USDA federally inspected cattle slaughter for last week was estimated at 585,000 head. That 9,000 head above last week but 50,308 head below the same week last year…

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