Live cattle and feeder cattle futures traded sharply lower on Wednesday as technical selling took over the complex. December live cattle traded $7.25 cents lower to close at $220.52 per cwt, marking a limit-down move to the lowest level in over seven months. January feeder cattle traded $9.25 cents lower to $325.72, also a limit move.
Cattle futures resumed their risk-off mood this week following a short-term recovery. The lack of willing buyers accelerated selling throughout the day and pushed prices below last week’s lows. That took futures limit-down throughout the deferred months.
Feeder cattle auctions continued to show improvement from last week’s negative mood. At the Phillip Livestock Auction in South Dakota, feeder steers weighing 500 to 700 pounds sold for $15 to $20 higher than the previous week. The CME Feeder Cattle Index fell as low as $343 per cwt this week, the lowest since Aug. 18. Cash feeder and live cattle prices continue to hold a premium over futures.
Choice boxed beef prices were mostly steady at midday on Wednesday. The cutout value rose 31 cents to $377.89 per cwt. Prices remained well above their seasonal averages.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.