Alan Brugler – Barchart
Mon Dec 21, 7:26AM CST
Live cattle futures closed with 2 to 40 cent gains on Friday. December futures gained $1.12 on the day, and $1.72 on the week. Feeder futures ended the day mostly lower competing with corn, Friday losses were 10 to 52 cents in the front months.
The CME Feeder Cattle Index for 12/17 was $1.29 higher to $138.48. USDA reported some Friday business in NE from $107 to $108. The majority of northern deals for the week were near $104.
Cash business in the South was light last week, with a few Thursday deals at $108. Limited business in the beef was mostly at $167.
USDA Cattle on Feed numbers showed a 12.036 million head inventory on December 1. That was up 0.04% yr/yr, for the 3rd largest December inventory on record. Placements were 8.83% lower than November ‘19, with the trade expecting an 8.2% drop, with 1.906 million head. Lower placements in CO, NE, and TX accounted for 75% of the difference from year to year.
Marketing’s were a little higher than average expectations at -1.7% from November ’19. Wholesale beef prices were mixed on Friday. Choice boxes were $0.88 lower to $208.63, and Select boxes were up 57 cents to $194.27.
USDA estimated last week’s federally inspected cattle slaughter is 659,000 head through Saturday.