Morning Livestock Report, 10/05/2015

Monday, October 5, 2015

The cattle market finished last week on a positive note, with both live and feeder cattle futures posting triple digit gains and, if prior Mondays are any indication, we may follow through on those gains this morning. But the real question is whether the cash market can at least stabilize, after getting torched for roughly $30 over the past eight weeks. Packers are doing their part and put together another "large" slaughter total last week of 571K head, down just slightly from the 574K the prior week and 578K two weeks ago. Boxed beef prices remain under pressure as a result, down $6 in the choice cutout index last week, along with the fresh lows in the trim and by-product markets. Do remember that the nearby October live cattle contract goes into the delivery period beginning tonight. Current futures at $123+ and last week's cash near $119-121 would seem to invite some degree of delivery interest especially in the North. Interesting to see CFTC data show the managed money category as net buyers of live cattle last week despite futures being down $8 during that span??!!

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