AgResource Daily Cattle Analysis: Cattle and feeder cattle futures closed higher on Thursday, and a firm outlook is offered ahead of the weekend. Live cattle gapped lower to open on Thursday, but early weakness uncovered demand, and news of higher cash trade lifted live cattle prices into the close. Feeders marked better gains as the corn market turned lower.
Cash markets turned active on Thursday, with higher prices in all regions. Live trade in the north was $2-3 higher at $186-187, and dressed sales were $3 higher at $294. Live sales in the south were $2 higher for the week at $185, or the best price in over a month. The northern premium increased to $2-3 over the south and was the highest in 6 weeks, while basis turned up to $3.50 over nearby CME futures. Seasonally, the northern premium tends to narrow into the end of the year, while nearby basis tends to remain positive.
Boxed beef values were lower on Thursday and are holding weekly losses. Estimated slaughter margins have again fallen sharply this week, but cattlemen have maintained leverage on tight inventories. The next target for December cattle is the summer highs at $188-190.00.
