Live cattle futures pull off early losses on Friday, with contracts closing down 30 cents to $1.15 higher. October was up 95 cents on the week. Open interest on Friday was down 1,841 contracts. Cash trade has picked up a few at $355-360 dressed and $223-227. Feeder cattle futures were down 55 cents in the front month August, and other up a dime to $1.85 on the day, with September falling $5.52 last week. The CME Feeder Cattle Index was down another 85 cents on August 20 to $341.00.
On Friday, President Trump stated the US “will allow up to 300,000 metric tons of product for ground beef to be imported with no out of quota tariffs” for 90 days.
USDA’s Cattle on Feed report showed July placement dropping 11.01% from a year ago at 1.422 million head, well below estimates. July marketings were down 7.38% to 1.62 million head, in line with expectations. August 1 on feed inventory was up 1.79% to 11.117 million head, short of estimates calling for a 2.4% increase.
Commitment of Traders data showed managed money trimming another 3,148 contracts from their net long in live cattle futures and options to 61,514 contracts as of Tuesday. In feeder cattle futures and options specs cut back 1,240 contracts from their net long of 7,498 contracts in the week of August 18.
Wholesale Boxed Beef prices were lower in the Friday PM report, with the Chc/Sel narrowing to $24.37. Choice boxes were down $4.24 at $385.69, with Select $2.42 lower to $361.32. USDA estimated last week’s Federally inspected cattle slaughter at 523,000 head. That is up 6,000 head from the previous week and 32,676 head below the same week last year.
Aug 26 Live Cattle closed at $223.050, down $0.300,
Oct 26 Live Cattle closed at $217.925, down $0.075,
Dec 26 Live Cattle closed at $218.500, up $0.225,
Aug 26 Feeder Cattle closed at $334.750, down $0.550,
Sep 26 Feeder Cattle closed at $329.025, up $0.100,
Oct 26 Feeder Cattle closed at $323.650, up $0.950,
