Live cattle futures headed into the weekend with weakness on Friday, as contracts were down 45 cents to $1.30. October fell $6.20 last week. Open interest was up 2,465 contracts on Friday. Cash trade picked up later in the week, with $222 sales across the country. Feeder cattle futures slipped back $1.55 to $1.97 to close Friday, with September down $8.12 this week. Open interest was up 2,250 contracts. The CME Feeder Cattle Index was down another 67 cents on August 27 to $332.80.
Commitment of Traders data showed managed money trimming another 4,073 contracts from their net long in live cattle futures and options to 57,441 contracts as of Tuesday. In feeder cattle futures and options specs cut back 1,784 contracts from their net long to just 5,714 contracts in the week of August 25.
On Friday, President Trump posted that “in order to break this powerful (packer) monopoly, with much of its ownership based outside the U.S., I am authorizing legal documents to be drawn in order to allow Farmers and Ranchers to be given the right to PROCESS THEIR OWN FOOD.” Few details were given on what would be done, though trimming back some regulations may be a solution.
Wholesale Boxed Beef prices were mixed in the Friday afternoon report, with the Chc/Sel narrowing to $15.15. Choice boxes were down $5.13 at $376.23, with Select $1.89 higher to $361.89. USDA estimated last week’s Federally inspected cattle slaughter at 542,000 head. That is up 19,000 head from the previous week, but 24,581 head below the same week last year.
Aug 26 Live Cattle closed at $219.250, down $1.050,
Oct 26 Live Cattle closed at $211.725, down $1.200,
Dec 26 Live Cattle closed at $213.725, down $1.075,
Sep 26 Feeder Cattle closed at $320.900, down $1.550,
Oct 26 Feeder Cattle closed at $316.525, down $1.550,
Nov 26 Feeder Cattle closed at $309.925, down $1.550,
