Feeder Cattle futures closed sharply lower on Friday with recent weakness, light trade, higher corn prices and defensiveness to the Cattle on Feed report (see below). Live Cattle followed along but less steeply.
Live Cattle futures closed an average 67¢ lower (45¢ to 90¢ lower).
Feeder Cattle futures closed an average of $1.67 lower ($1.00 to $2.17 lower).
Choice boxed beef cutout value was $3.00 lower Friday afternoon at $207.24/cwt. Select was 2¢ higher at $187.85.
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Major U.S. financial indices closed lower on Friday with profit taking from the previous session’s sharp gains apparently one of the drivers.
The Dow Jones Industrial Average closed 100 points lower. The S&P 500 closed 6 points lower. The NASDAQ closed 10 points lower.
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Placements came in higher than pre-report estimates once again—about 3% more than average expectations, according to the monthly Cattle on Feed report from USDA on Friday. The 2.39 million head placed on feed in October were 10.2% more than last year. In terms of weight composition, 52.93% went on feed weighing 700 lbs. or less and 10.46% went on feed weighing 900 lbs. or more.
“October is an important month when referencing placements as it is the largest month in regard to number of animals placed into feedyards,” say analysts with the Agricultural Marketing Service.
Marketings in October of 1.80 million head were 5.6% more than a year earlier, which was in line with pre-report estimates.
All told, there were 11.3 million head on feed Nov.1, which was 6.3% more than a year earlier, also in line with expectations.