Cash fed cattle prices traded higher for a fourth-consecutive week, reaching the highest average price since August of 2015.
Packers were called active buyers during a week that saw cash trade in the North at $142 to $143 live and $225 to $226 dressed, mostly steady to $1 higher. Cattle in the South traded at mainly $142 live, which was $2 higher than the previous week.
Feeder cattle traded mixed from $2 lower to $3 higher. Calves sold mainly steady to $4 higher.
The inventory of market-ready cattle remains large, but packers have sought inventory and slaughter levels have increased steadily. Weekly slaughter was estimated at 663,000, the largest of the year, and 4,000 head higher than last week. The year-to-date total was 4.487 million head, down 0.2% from last year.
Wholesale beef prices continue the trend lower. Choice boxed beef closed Friday at $265.85 per cwt., down $8.97 per cwt. from the previous Friday. Select boxed beef closed Friday at $262.63 per cwt., down $6.32 for the week.
Cattle futures saw corrective pressure late week after posting contract highs the previous week. April live cattle fell 90 cents to $145.875, down 30 cents for the week and the lowest closing price since Feb. 1. March feeder cattle fell 77.5 cents to $165.425, down 80 cents for the week.
Futures declined despite continue strength in cash markets, with live steers up about $1.90 this week to an average of $142.25. While April is still about $4.00 over cash, the late-week slide seemingly implies diminished expectations for next week’s cash action. This probably reflects the ongoing decline in wholesale beef values. Industry attention will be focused on USDA’s monthly Cold Storage report Feb. 22 and the next Cattle on Feed report Feb. 25.
