Live cattle markets were lower on the session today with the February contract down .700 cents, settling at 152.55. Beef demand is holding steady as the all-fresh retail beef price in October was $7.25/lb., down slightly from $7.32/lb. in September and down 4.0 percent from the record high of $7.55/lb. one year ago. In 2022, the all-fresh retail beef price has remained in a narrow range from $7.37/lb. to $7.25/lb. and has averaged $7.33/lb. through October, up from the 2021 annual average of $6.95/lb. Packers pulled heavily from previously contracted supplies and cattle bought with time the past two weeks, so their need for cattle in the negotiated market should be stronger this week. Live steers averaged $151.86 through Thursday morning, down 12 cents from the previous week’s average. December live cattle fell $1.55 Friday to $151.525, down 12.5 cents for the week.
From a technical standpoint, Feb cattle looks to be at a support level around the 152-price level and could see a bounce going forward, in my opinion. Something to keep an eye out for is the cash trade this week as it is supposed to be firmer going forward and give support to the futures market, but as of right now that remains to be seen.
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Peter McGinn
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Walsh Trading, Inc.
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