October live cattle (LEV26) futures on Friday fell $1.175 to $218.875, hit an eight-month low, and for the week were down $6.40. September feeder cattle (GFU26) futures lost $2.65 to $334.55, also hit an eight-month low, and for the week fell $10.675. The cattle futures markets saw some panic selling early in the session Friday by traders that were spooked by uncertainty following news that Tyson Foods (TSN) “is making strategic changes to its beef operations to position the company for long-term success.” The company said in a press release that it will end operations at its Joslin, Illinois, beef facility and its Eagle Mountain, Utah, case-ready facility and is pursuing the sale of its Pasco, Washington, beef facility.
However, futures prices recovered as the session progressed. Lower cash cattle trade last week was also bearish for futures. Friday’s technically bearish weekly low closes in live and feeder cattle futures set the table for more price pressure from the chart-based speculators early this week.
