Cattle Locked Limit Down in Response to Tyson News

Live cattle futures are down the $7.25 limit across most contracts on Monday. Last week’s cash trade was $215-219 in the North, with $220-224 in the South. Feeder cattle futures are down the $9.25 limit across the board at midday. The CME Feeder Cattle Index was up $1.44 to $339.72 on November 20. The weekly OKC feeder cattle auction has an estimated 3,200 head for sale, with feeders down $10-20 and calves down $20-40 early.

Late 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. The shutdown isn’t expected until January 20, which limits the immediate impact (i.e. the December and February contracts), but longs want out.

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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.

USDA reported Wholesale Boxed Beef prices lower in the Monday AM report, with the Chc/Sel spread narrowing to $13.71. Choice boxes were down $1.45 to $370.03, while Select was 66 cents lower at $356.32. 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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