Cattle feeders were primed for cash rally this week and settled for $1 to $2 higher. Any shift in leverage from packer to feeder seemed to erode as labor and mechanical issues plagued the processing industry.
Cattle in the North traded from $125 to $129 live and a wide range of $200 to $208 dressed, most at $203, steady to $2 higher. Cattle in the South sold at $121 to $123, steady to $1 higher.
October live cattle fell 47.5 cents on Friday to $129.125 per cwt., up marginally from last’s Friday settlement at $129.05 for the contract’s seventh consecutive weekly gain. October feeder cattle rose 15 cents to $168.425, up from $167.625 at the end of last week. Live cattle futures tumbled from contract highs early this week amid growing beliefs wholesale beef prices established a peak, with retailers wrapping up purchases ahead of the Labor Day weekend.
The week’s cattle slaughter was estimated at 651,000 head compared to 653,430 last year. Total year to date is 21.839 million head 4% higher than last year.
Wholesale beef movement was much smaller than previous weeks and buyer demand is noticeably softer. The Choice cutout closed Friday at $345.34 per cwt. Select closed at $315.52 per cwt.
Feeder cattle traded mixed at $1 lower to $2 higher. Calves also traded mixed from $3 lower to $2 higher.
