Cash Cattle Firm, Futures Tumble to Seven Week Low
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.
