December Live cattle fell 1.325 today with substantial volume behind the move today. The move today took out yesterdays and Monday’s low. In my opinion, the market is hitting a near term resistance levels around 148 so the near-term top appears to have been made. The USDA boxed beef cutout was up 10 cents at mid-session yesterday choice beef cutout values fell $3.25 to $259.79, the lowest since mid-May, but movement was active at 162 loads, signaling strong retail demand, especially on price downturns. Overall movement last week was 3,611 loads, a six-week high. Cash traded at 144-145 in Nebraska with 2,976 head traded. The slaughter numbers came in yesterday 126,000 head which brings the total up to 248,000 down from 257,000 from last week but up from 237,000 from last year. From what the data is showing, the producers are current with marketings and the lower weight could hold down beef production.
October feeders couldn’t hold support even though corn prices fell 6 cents. October feeders settled at 183.475, the past two days have had declining volume. With the declining volume and lower price moves, I believe feeders will continue to move lower and break down past 180 for the October contract.