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

Live cattle futures closed narrowly mixed on Friday, with December giving up 1.00 for the week. Southern cash trade was mostly held off until Saturday, with the highest trade we saw coming in at $127. The lower cash trade will likely lead to a lower futures open this morning. Cutout values were off 1.69 and 2.39 on Friday, continuing their recent trend. Packers will be trying to secure cattle ahead of the Thanksgiving break, and will be buying for a full kill week.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: 20-40 Lower

Feeder cattle futures scored triple digit gains in the lead contract on Friday and saw cattle on feed numbers come in mostly as expected. Placements were down in every weight category except above 800 lbs. Overnight corn prices are off 1-2 cents, which may provide some modest support. The fact that futures are at a sharp discount to cash will offset a bit of blow from deep losses coming out of the feedlots this fall.

Bret Crotts
Schwieterman Marketing, LLC