Cattle Prices Dip Amid Labor Disruptions and Market Uncertainty
Cattle prices saw a slight decline last week, with live cattle futures falling 68¢ and feeder cattle futures down 83¢. December live cattle closed at $221.48 per hundredweight (cwt), while November feeder cattle ended at $331.15 per cwt. Analysts attributed the price movements to various factors, including labor disruptions and market uncertainty.
Aaron Thiele of AgMarket.Net noted that the futures market was choppy due to uncertainty about further price gains. He pointed to improving slaughter numbers after disruptions caused by ICE raids in Kansas. Boxed beef cutout values started the week higher but struggled to stay above $380. Thiele expects slaughter numbers to continue supporting the market as the impact of the ICE raids fades.
Brian Grete of Commstock Investments observed that both live cattle and feeder cattle remained in short-term holding patterns. He highlighted the influence of the corn market on feeder cattle prices, suggesting that further declines in corn prices could boost feeder cattle gains. Grete also noted that trade across the Mexico border remained limited, with only 6,050 head of cattle crossing last week.
In the cash market, feeder cattle prices were steady, starting the week at $337.79 and ending at $336.84. Fat cattle cash prices traded in a range of $219-222 in the north and $226 in the south, with dressed prices between $345-350. The fall run for feeder calves is underway, with Northern sales potentially lifting the index. However, traders remain cautious due to limited cash market activity and packer confidentiality in the Southern Plains.