Live cattle futures caught some strength on Friday, with contracts up $1.10 to $1.65 at the close. December was up $1.30 on the week. Open interest was down 3,119 contracts on Friday, suggesting some short covering. USDA reported northern dressed sales at $350-355 and $222-227 live. Southern sales were reported at $228. The Friday morning Fed Cattle Exchange online auction showed sales of $228-228.50 on 571 of the 2,596 head offered, with a few $224-228.50 bids. Feeder cattle futures ended Friday with mixed action, as most contracts were 25 cents to $1.70 higher and November down a nickel, both on Friday and the week. The CME Feeder Cattle Index was another 90 cents higher on October 15 to $343.54.
Friday’s Commitment of Traders report from CFTC showed managed money trimming 2,172 contracts from their net long in live cattle futures and options in the week of 10/13, taking it to 47,748 contracts. In feeder cattle futures and options, specs added a modest 65 contracts to their net long as of Tuesday at 8,852 contracts.
