Cattle Futures Held Back by Beef

Front month live cattle worked lower on Friday with 35 to 82 cent losses. October cattle options expired and the underlying closed ~$1.17 above the cash market. Feeder cattle futures ended the last trade day of the week with triple digit losses. The October 1 Feeder Cattle Index from CME was 58 cents stronger to $142.96. Most cash business was complete through Thursday, USDA reported some cleanup Friday sales at $106 -$109, mostly $107 and $108. The CoT report showed managed money was 62,924 contracts net long in cattle on 9/29. That was 4,925 contracts stronger wk/wk from net new buying. In feeders, managed money funds were 165 contracts more net long at 875 contracts. Wholesale boxed beef prices were lower Friday afternoon, tightening the spread to $11.27. Choice boxes were $218.88, down a dime, and Select boxes were $207.61, down a penny. Weekly federally inspected cattle slaughter was estimated at 665,000 head. That is up 20,000 from the same week in 2019. USDA estimates the YTD slaughter at 24.173 million head, which is still 4.1% lower yr/yr.

--- provided by Brugler Marketing & Management

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

Did you know Brugler Marketing & Management has more to offer to you than just this free daily commentary?! Producers just like you rely on our custom research and daily guidance on when and how to market their commodities. Click here to learn more about what we have to offer, or call 402-697-3623. Do it today!

Do you want to know what trades Alan Brugler recommends? Subscribe to Ag Market Professional, and become part of the Brugler client group! Not sure? Ask for a FREE SAMPLE and get two FREE GIFTS! Start here

Want this Ag News delivered to your inbox? Get the FREE Brugler Ag Newsletter, delivered 3 times daily.