Cash Cattle Lower, Wholesale Beef Marches Higher
Cash cattle traded lower in all regions last week. In the North trade was mostly at $178 live ($2 lower) and dressed from $283 to $286 per cwt. ($2 to $5 lower). In the South the bulk of trading was at $173 live, which is $2 per cwt. lower than the previous week.
Feeder cattle traded mostly higher in wide ranges from $2 lower to $5 higher. Calves were called steady to $8 per cwt. higher.
Wholesale beef prices gained $4.47 on the week. Choice closed Friday at $311.07 per cwt., up $4.47. Select closed Friday at $289.09 per cwt., up $1.29 for the week.
Estimated weekly slaughter was 620,000 head, down 27,000 head from last year. Year-to-date total is estimated down 3.2%.
April live cattle futures dove just before expiration after trading around $177.00 through much of Friday’s session and went off the board 27.5 cents lower at $175.175. Nearby June ended the day at $165.475, up 27.5 cents on the day and up 95 cents on the week. May feeder futures fell 55 cents to $210.975, with the closing price representing a weekly decline of $1.425.
Pro Farmer analysts said packers are apparently holding the line on purchases with plans to rely heavily upon contracted cattle for a sizeable portion of next week’s slaughter supply.
“We think this is a temporary stop-gap for them and expect them to have to pay fresh high prices next week and/or the week after. One reason for this bias is the ongoing strength being exhibited by choice beef values, which edged up to a fresh for-the-move high at $311.13 at midsession today. Estimates putting packer margins still solidly in the black won’t persuade many producers to take less for their cattle either.”
