Cattle futures closed mostly slightly lower Friday with profit taking from the week’s rally and positioning.
Other than $1.22 higher in spot Oct and 12¢ higher in near Dec, Live Cattle futures closed an average of 50¢ lower (32¢ to 85¢ lower).
Not counting expired Oct and newly hatched away Oct, Feeder Cattle futures closed an average of 27¢ lower, except for 2¢ higher in Aug.
Choice boxed beef cutout value was 93¢ higher Friday afternoon at $203.30/cwt. Select was 57¢ higher at $192.48
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Major U.S. financial indices closed higher on Friday led by tech stocks, including better than expected earnings from Amazon and Microsoft.
The Dow Jones Industrial Average closed 33 points higher. The S&P 500 closed 20 points higher. The NASDAQ closed 144 points higher.
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“Thus far, prices in the fall of 2017 have been beneficial to adding additional weight to calves,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “As an example, starting October with a 525-pound steer and adding 50 lbs. in the month has resulted in a value of gain near $1.74 per pound, which has likely resulted in $50-$70 per head gains after feed costs. Continuing to hold on to lightweight calves should prove beneficial if those animals will be carried into 2018 and sold as value-added calves. Alternatively, if the plan is to sell calves in the next four to five weeks, then producers continue to face the risk of calf prices seasonally declining in November. Calf prices could remain steady over the next month, but there is no guarantee. Stocker producers should run breakeven analysis on fall purchased calves. It appears profits of at least $100 per head can still be hedged at this time.”