Live Cattle
Short Term: Down
Long Term: Up
Opening Calls: 20-40 Lower

Live cattle futures finally fell victim to the equity weakness on Thursday, dropping to limit lower by the close of the session. Cash trade remains tame for the week, with some lite movement in the north at steady to lower money than a week ago. We expect bids to be hard to find early in today's session. The equities are rebounding about 30% of Thursdays’ losses in overnight trade. Beef prices remain on fire, with afternoon quotes even stronger than the midday strength.

Feeder Cattle
Short Term: Up
Long Term: Down
Opening Call: 40-80 Lower

Feeder cattle futures led the selloff in the meat sector on Thursday, reaching limit lower a little past midsession and dragging the fats with them. Cash index levels remained strong on Thursday, gaining 1.03 for the day and now more than 4.00 premium to the spot futures. We look for cash to draw back over the next few days, with Monday’s index possibly making a significant decline. Corn prices are in the bend but don't break mode at current levels and are slightly higher overnight.

Bret Crotts
Schwieterman Marketing, LLC