Fed Cattle Shed Another $2, Futures Lower
Cash fed cattle traded at $113 per cwt. for the week, $2 lower. Cattle sold on a dressed basis at firm to $5 lower at $180 to $182 per cwt.
CME cattle futures faced heavy selling pressure to close the week. Live cattle ended $2.525 to $2.90 lower, while feeder cattle finished $2.925 to $3.60 lower. For the week, April live cattle dropped $1.825 and posted a new contract low. April feeder cattle fell $2.65 this week.
Steers and heifers sold uneven at auction, from $2 lower to $3 higher. Agricultural Marketing Service reporters said auctions that saw drastic swings lower last week swung sharply higher this week.
AMS noted the $18..55 loss on CME futures for April Live Cattle since January 24, calling the devaluation roughly $200 per head on a 1300-pound steer.
Cattle Slaughter under federal inspection was estimated at 647,000 for the week, 20,000 more than last week and 40,000 more than a year ago. This week’s cattle slaughter is the largest for this week of the year since 2008, when the actual slaughter was reported at 647,060. On the week, Choice cutout closed $2.17 higher at $207.47, while Select was $3.66 higher at $202.57. The Choice-Select spread was $4.90.
