Futures traders awaiting direction from the week’s cash fed cattle trade were disappointed on Friday as the standoff between feedlots and packers continued through the afternoon with scant trade and too few transactions to trend.
Front-month Live Cattle drooped as traders squared positions for the end of the year, while firming wholesale beef values helped lift Feeder Cattle.
Choice boxed beef cutout value was 62¢ higher on Friday afternoon at $202.90/cwt. Select was $2.07 higher at $192.98.
Live Cattle futures closed an average of $1.12 lower in the front two contracts, including $1.55 lower in expiring Dec. Contracts across the rest of the board were narrowly mixed but mostly lower (32¢ lower to 30¢ higher).
Except for 25¢ lower in the back contract, Feeder Cattle futures closed an average of 55¢ higher (40¢ to 82¢ higher).
Major U.S. financial indices closed lower on Friday with a late-session selloff, presumably tied to profit-taking, year-end book balancing and positioning ahead of the long holiday weekend. Spot Crude Oil futures (WTI) closed at its highest level in a couple of years.
The Dow Jones Industrial Average closed 118 points lower. The S&P 500 closed 13 points lower. The NASDAQ closed 46 points lower.
Overall, market fundamentals remain firm, with feedlot marketing apparently remaining current, wholesale beef values finding some traction and markets shrugging off the bearish monthly Cattle on Feed report from the previous Friday.
Cattle futures also received an early-week jolt from the severe cold and winter weather making its way across much of the U.S., which will impair feedlot performance.
Feeder Cattle futures closed an average of $3.79 higher week to week on Friday ($2.50 to $4.45 higher).
Live Cattle futures closed an average of $2.71 higher week to week on Friday ($2.17 to $3.17 higher). And that was with cash fed cattle trade stymied through late Friday afternoon.
Though too few to trend, through Saturday morning, AMS reported 1,266 head of fed cattle trading hands. Steers brought $120.27 on a live basis and $193.17 in the beef. Dressed heifer sales were at $196.