Cattle Current Podcast-November 21

As logic suggested, futures traders pushed Cattle futures sharply lower on Monday, in the wake of Friday’s monthly Cattle on Feed report. October placements were 10.2% more than the previous year, about 3% more than average estimates heading into the report.

However, Katelyn McCullock, economist with the American Farm Bureau Federation points out feedlot marketings remain higher, too.

In the latest issue of In the Cattle Markets (see below), McCullock explains, “Marketings have continued to be aggressive, so feedlot inventories have not become burdensome even though nine of the last 12 months have shown placements over 10% ahead of the prior year. Marketings have remained 3-10% above a year ago all year.” In October, marketing were 5.2% more than a year earlier.

Live Cattle futures closed an average $1.34 lower (77¢ to $1.75 lower).

Feeder Cattle futures closed an average of $2.16 lower ($1.07 to $2.57 lower).

Choice boxed beef cutout value was $1.06 lower Monday afternoon at $206.18/cwt. Select was 20¢ higher at $188.05.