Cattle Current Podcast-November 16

Cash fed cattle traded sharply lower on Wednesday…Cattle feeding returns are projected to be positive for the next several months…coming up on your Cattle Current Market Update with Wes Ishmael.

Cash fed cattle trade got underway Wednesday with prices a solid step behind last week.

Negotiated cash fed cattle trade in the country was $1-$4 lower on a live basis at $119-$120/cwt. Dressed trade was $2-$4 lower at $188-$190.

Similarly, prices were about $119 for cattle selling in the weekly Fed Cattle Exchange auction—$119.21/cwt. for delivery at 1-9 days; $119.25 at 1-17 days. Most of the cattle offered in the sale changed hands—617 out of 969 head.

Reasons that cattle feeders were willing to take lower money early in the week likely include: a chance to sell at a profitable level, wholesale beef values running out of steam and the lack of support from Cattle futures. There was also chatter that packers have adequate inventory heading into Thanksgiving week.

Choice boxed beef cutout value was 54¢ lower Wednesday afternoon at $210.13/cwt. Select was $2.88 lower at $190.61. Week to week, that’s about $3 lower for Choice and $8 lower for Select.

Despite all of that, Cattle futures found a foothold on Wednesday amid lighter trade.

Live Cattle futures closed an average 41¢ higher in the front five contracts and then unchanged to an average of 20¢ lower.

Feeder Cattle futures closed an average of 38¢ higher except for 50¢ lower in the back contract.