Negotiated cash fed cattle trade ended the week generally steady to $2 lower in the beef at $190-$192/cwt. Live sales were was $1 lower in the Southern Plains and Colorado at $124/cwt. Elsewhere, live sales were steady to $3 lower at $120-$122.
Cattle futures faded some of the heaviest selling pressure on Friday, but still closed mostly solidly lower as traders ponder the odds of whether or not the top in fed cattle is still coming or just behind.
Live Cattle futures closed an average of $1.78 lower through the front three contracts. After 77¢ lower in June, contracts were 12¢ lower to 10¢ higher.
Other than unchanged in spot Nov and 20¢ and 25¢ higher in the back two contracts, Feeder Cattle futures closed an average of 49¢ lower (32¢ to 67¢ lower).
Choice boxed beef cutout value was $1.11 higher Friday afternoon at $213.85/cwt. Select was $3.79 lower at $194.51.
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Major U.S. financial indices paddled sideways to lower on Friday, with traders taking stock of tax reform scenarios and timing of an ultimate market correction to generally over-bought conditions in equities.
The Dow Jones Industrial Average closed 39 points lower. The S&P 500 closed 2 points lower. The NASDAQ closed fractionally higher.
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“Margins remain favorable for cattle feeders with a steady price this week, but packers were looking for any way to slow the ratcheting up of finished cattle prices that have outpaced price movements in the boxed beef market,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “It is hard to tell if the early cattle trade was the reasoning for softening of December Live Cattle futures or if packers would have benefited from waiting until December futures declined about $5 from last week’s close. Regardless of what is leading the market, it would appear finished cattle prices will remain strong the next few weeks.”