Live cattle futures are down the $7.25 limit at midday, with nearby October slipping $5.77. Cash trade has seen action across the country at $238-240 so far this week. The Friday morning Fed Cattle Exchange online auction showed sales on 433 of the 1,646 head offered with at $238-239. Feeder cattle futures are down the $9.25 limit nearly across the board, with October down $9.025. November is synthetically trading (via options) near $348, or another $4 lower. The CME Feeder Cattle Index was back down $1.38 at $370.62 on October 22.
A report late on Thursday suggested the Mexican ag ministry was headed to Washington next week to discuss reopening the border that has been closed to cattle imports due to New World Screwworm.
A Reuters survey of analysts is looking for September placements to be down 8.8% from last year. The monthly cattle on feed report would normally be out this afternoon, but the government shutdown will likely delay that. Marketings are expected to be down 4.1%, with October 1 on feed seen 2% below last year.
USDA Wholesale Boxed Beef prices were higher in the Friday AM report, narrowing the Chc/Sel spread to $18.29. Choice boxes were up $2.76 to $375.90, while Select was $2.87 higher at $357.61. USDA federally inspected cattle slaughter for Thursday was estimated at 119,000 head, with the weekly total at 446,000 head. That is 20,000 head below last week and 47,316 shy of the same week last year.
Oct 25 Live Cattle are at $233.950, down $5.775,
Dec 25 Live Cattle are at $233.925, down $7.250,
Feb 26 Live Cattle are at $233.425, down $7.250,
Oct 25 Feeder Cattle are at $354.325, down $9.025
Nov 25 Feeder Cattle are at $352.200, down $9.250
Jan 26 Feeder Cattle are at $348.175, down $9.250
