AgResource Daily Cattle Analysis: Cattle and feeder cattle futures were lower last week, and a steady to weaker outlook is offered for early trade today. Early week strength was played out by the end of the day on Wednesday, and liquidation drove cattle and feeder cattle futures lower in the last half of the week. Losses in feeder cattle were greater as the corn market moved higher for much of the week.
Early-week optimism for the week’s cash trade turned down with the CME, and sales were lower in all regions. Live trade in the north was down $3 at $181, and dressed trades were $3-5 lower at $286-288. Live sales in the south were $2 lower at $181. The north/south spread converged to even money.
Cattle slaughter last week was down 11% due to the holiday but was still 3% less than a year ago at 542,000 head. The average carcass weight of 851 Lbs was up 3 Lbs for the week and 23 Lbs heavier than a year ago. Weekly beef production was just 0.3% less than last year.
The Commitment of Traders report showed that for the week ending Sep 3, funds bought 44 live cattle contracts against commercial buying of 1,677 contracts. The Tue-Tue price change in Oct cattle was -$.125/cwt.
Long-term support for nearby cattle futures is just below the market near $174, while resistance in October cattle is from $180-182.
