Markets: Cash Prices Bounce Higher as Bulls Return to Futures
Cash fed cattle prices posted their best week of the new year with solid gains in all regions. Cattle in the South sold at $178 to$179 per cwt. live in a moderate trade, $3 to $5 per cwt. higher than last week. Cattle in the North traded at $176 per cwt. live and $280 per cwt. dressed, steady live and $3 to $5 higher dressed. Cash cattle are now $8 to $9 per cwt. off the winter lows.
Feeder cattle traded mainly $2 to $10 per cwt. higher, with calves selling $5 to $10 per cwt. higher and instances of larger advances.
Wholesale beef prices finished the week significantly lower. Choice boxed beef closed Friday at $293.08 per cwt., down $7.45 for the week. Select boxed beef closed Friday at $283.47 per cwt., down $5.66 per cwt. The softer trend is expected for the near term.
At the CME, April live cattle futures rose 57 1/2 cents on Friday to $183.75, closing near mid-range, reaching a nearly three-month high and gaining $2.075 for the week. March feeder cattle futures lost 7 1/2 cents to $244.80, nearer the session low after hitting a 3.5-month high early on. For the week, March feeders rose $5.10.
The bullish weekly high close in April live cattle futures sets the stage for some follow-through technical buying interest from the speculators early next week. Solid cash market fundamentals should continue to support buying interest in futures.
