Cattle feeders held firm to asking prices this week and were rewarded when packers anted up at $112 to $114 in all regions. Those prices are $4 to $6 higher than the previous week. Dressed trade in the North occurred at $178 to $180 per cwt., $10 to $11 higher.
Many cattle feeders see this week's rally as an indication the summer market low has been established. Others caution there are a lot of cattle to be marketed by Labor Day.
The mid-week holiday put a damper on auctions as the offerings of feeder cattle did not establish a good market test. AMS reported that over half of the auction receipts for the week were attributed to the drought-stricken state of Missouri. Feeder cattle were reported at some auctions $2 higher, with calves steady compared to the previous week.
The Choice cutout closed $3.93 lower at $208.03. Select cutout closed $0.14 higher at $198.71. The Choice-Select spread ended at $9.32.
Moisture is much needed in the heart of the country as 49% of the U.S. is now classified as a D0 drought designation or worse.