Cash Cattle: Another Week, Another Record Price
Cash cattle markets continued a late spring runaway, with an active trade in all areas. The North led the way again with live prices mainly at $190 per cwt, $2 to $10 higher, and a dressed trade at $300 per cwt., which is $8 to $10 higher. Trade in the South was active at $185 to $186 live, which is $4 to $10 per cwt. higher than the previous week.
A significant rally in fed cattle over the past three weeks confirms the front-end supply of cattle remains extremely current and cattle feeders have been willing sellers driven by good profits and a strong basis. Cattle feeders’ leverage remains historically strong.
Feeder cattle sold mostly $4 to $15 per cwt. higher and calves sold $2 to $12 per cwt. higher.
Wholesale beef prices also spiked higher. Choice boxed beef closed Friday at $332.93 per cwt., $23 per cwt. higher than the previous week (+7%). Select boxed beef closed Friday at $305.71 per cwt., $14.78 per cwt. higher for the week.
At the CME, expiring June live cattle futures fell 55 cents to $178.225 Friday, while most-active August dropped 40 cents to $171.85. That represented a weekly drop of $1.05. August feeder futures posted a strong late surge and ended the week at $239.00, which marked a daily rise of 35 cents but fell $2.90 on the week.
Traders continue to anticipate a big seasonal reversal in fed cattle prices in the coming weeks. That’s made most evident by the June contract, which will expire on Friday, June 30. The Monday-Thursday average of cash cattle price was $189.06 as Southern Plains cattle began changing hands Thursday.
