Cattle Finish Monday at Maximum Loss

Live Cattle Market Update

Live cattle futures saw a significant drop on Monday, with most contracts losing a limit of $7.25. An extended limit of $10.25 has been set for Tuesday. There was a brief cash transaction in the Western Corn Belt reported by the Department of Agriculture at $208. Last week, spot trading prices ranged between $215-219 in the north and $220-224 in the south. On the other hand, feeder cattle futures closed beneath the limit by $9.25 on Monday, which was adjusted to $13.25 for Tuesday. The CME Feeder Cattle Index decreased by $3.34 to $336.38 on November 21. Meanwhile, around 3,302 head were sold at the weekly OKC feeder cattle auction, with feeder prices dropping between $10 and $20 and calves declining $20 to $40 early on.

In late Friday news, Tyson announced plans to shut down its Lexington, Nebraska plant and shift operations at its Amarillo, Texas facility to a single full production shift. This closure is expected to last until January 20. Although the immediate effects on December and February contracts may be limited, investors are hopeful for a positive outcome.

According to the monthly cattle feed report released on Friday, 2,039,000 head were fed in October, which is a 10.02% decrease compared to last year. Marketing numbers also fell by 8.02% to 1,697,000 head. Consequently, the feed count on November 1 stood at 11,706,000 head, down 2.17% from the previous year, aligning closely with market estimates.

The USDA’s report on Monday afternoon indicated a decline in wholesale prices for boxed beef, with the Chc/Sel spread widening to $14.98. Choice Box dipped by 99 cents to $370.49, while Select fell $1.47 to $355.51. The estimated number of cattle slaughtered federally on Monday was 120,000. This figure is an increase of 4,000 from last week but down by 2,245 compared to the same week last year.