Today’s Livestock Market Update

Friday felt like a kick in the teeth for the livestock complex as the market was sent plunging lower thanks to the weakened economy.

LIVE CATTLE:

The only good thing that surfaced throughout Friday’s trade was the market’s closing bell as that meant the complex was done eroding for the day. It was brutal to watch the complex sink lower throughout the day as traders reacted to the Dow’s deterioration amid greater economic concerns. The spot October contract didn’t break through its support plane, but the market is trading on the bottom end of its current sideways range. October live cattle closed $2.07 lower at $175.17, December live cattle closed $2.02 lower at $174.70 and February live cattle closed $1.92 lower at $175.40. Throughout the week, Southern live cattle traded at mostly $181, which is $2.00 lower than last week’s weighted average, and Northern dressed sales were marked at mostly $288, which is $2.00 lower than last week’s weighted average. The other kicker about a lot of the dressed sales is they were committed for delivery for the weeks of Sept. 16 and Sept. 30 — meaning packers are diligently loading their deferred delivery option to try to avoid being short bought in the weeks ahead.

Friday’s slaughter is estimated at 123,000 head — 3,000 head more than a week ago and 1,000 head less than a year ago. Saturday’s slaughter is projected to be around 43,000 head. The week’s total slaughter is estimated at 542,000 head — incomparable to last week, but 16,000 head less than a year ago.

Boxed beef prices closed lower: choice down $2.10 ($309.41) and select down $0.66 ($296.12) with a movement of 135 loads (94.55 loads of choice, 16.45 loads of select, 3.74 loads of trim and 19.99 loads of ground beef).

MONDAY’S CATTLE CALL:

Lower. With packers buying cattle with time and the board being soft, cash prices will likely be lower next week.

FEEDER CATTLE:

It was a brutal day for the feeder cattle complex because the day’s pressure never eased ahead of Friday’s close. With most of the contracts closing upward of $3.00 lower — cattlemen seemed to hold their breath as they watched the contracts sink lower and lower through the day. So why you ask? Today’s pressure was largely triggered by economic concerns and the commodity markets reacted poorly to the external pressure. And without the support of the live cattle or fed cash cattle markets, feeders stood little to no chance at trading higher. September feeders closed $2.82 lower at $234.30, October feeders closed $3.62 lower at $230.95 and November feeders closed $3.65 lower at $228.02. The CME Feeder Cattle Index 9/5/2024: up $0.91, $242.18.