Live cattle futures experienced significant losses on Wednesday, October 25, with declines ranging from 90 cents to $2.52. Limited cash trade activity was noted, with sales at $260 in Kansas and $265 in the North. The Fed Cattle Exchange auction reported no sales from 652 head offered, with bids between $259-260. Conversely, feeder cattle futures gained ground, with contracts up 52 cents to $212.50. The CME Feeder Cattle Index decreased by $2.98 to $372.44.
Cargill’s Fort Morgan, CO beef plant has initiated a lockout of employees due to stalled negotiations, affecting the plant’s 4,700 capacity and likely leading to a shift of cattle to other facilities. Despite this, slaughter-ready cattle stocks remain tight.
Wholesale boxed beef prices fell, with Choice boxes down $2.13 to $393.62, and Select boxes down $2.45 to $394.86. The USDA estimated cattle slaughter for Wednesday at 108,000 head, totaling 321,000 for the week, which is an increase of 3,000 head from the previous week but 36,571 head lower than the same week last year.
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