Last week saw active fed cattle trade at steady to firm prices while futures turned sharply lower. Fed cattle traded in the North at $144 to $148 live and $230 to $234 dressed. Moderate to large volumes in the South traded at mostly $140 live, steady with the previous week. The Monday-Thursday five-area direct market average at $143.31 topped the comparable week-prior figure of $143.00.
April live cattle futures, which expired Friday, rose $3.40 to $141.90. June live cattle dropped $1.25 to $132.65, a seven-week low close and a weekly loss of $5.775. May feeder futures fell $1.60 to $156.35, down $7.525 for the week. Live cattle extended the week’s sharp losses triggered by USDA’s bearish Cattle on Feed report, with chart breakdowns fueling technical selling.
The Choice beef cutout moved $7.57 lower this week, while Select decreased by $4.62/cwt. High slaughter levels and cold, wet weather have put a damper on the beginning of grilling season and the normal, seasonal rally, that beef would see this time of the year.
Last week’s Cattle n Feed report was bearish as it revealed nearly 2 million head were placed on feed raising the total to over 12 million, the highest total for the date and 1.7% higher than last year. In the coming weeks seasonally high and historically-large, fed cattle supplies will impact the markets. Analysts expect the fed cattle market to soften into the summer.
