Markets: Fed Cattle Rally as Cowboys Hold ‘Em
Light trade of cash cattle traded at $182 in all regions with many feeders asking higher prices, $4 per cwt higher than last week. Dressed sales were also light at $285 to $287 with asking prices as high as $290. Many cattle owners were holding tight into the weekend.
Feeder cattle traded $2 to $8 per cwt. higher and calves sold $5 to $10 higher.
Wholesale beef prices rose modestly. Choice boxed beef closed Friday at $294.04 per cwt., up $0.96 per cwt. for the week. Select boxed beef gained $1.61 per cwt. for the week, closing Friday at $285.08 per cwt.
April live cattle futures rose 15 cents Friday to $186.725, near mid-range and on the week gained $2.975. March feeder cattle futures prices closed up 30 cents Friday at $247.15, near mid-range and for the week rose $2.35.
Today’s technically bullish weekly high closes in April live cattle and March feeders set the table for some more technical/speculator buying interest in both markets early next week. Cash cattle market fundamentals are still sound.
While packers have recovered from extended holiday- and weather-related cutbacks in January, steer dressed weights dropped from a record 942 pounds just before Christmas to 912 pounds in late January. Arctic weather in the Midwest in mid-January likely hurt cattle performance but warmer weather this month may boost weights only temporarily. Expect market-ready fed cattle supplies to remain very tight, especially with annual lows in weekly slaughter likely to arrive later this month or in March.
