Cash Cattle Steady, CME Futures Lower
Cash cattle trade was active at steady money in all regions last week. The volume of cattle traded appears sufficient to clean up showlists, suggesting steady-firmer cash trade this week. Market analysts note overall quality grades are lower than last year with Choice and Prime totals about 5% below last year.
Cattle traded at southern feedyards at $143 per cwt., while trade in the North occurred at $144 to $147 live, and $228 to $232 dressed.
Feeder cattle traded $1 to $4 lower and calves ranged from $1 to $8 lower.
CME December live cattle futures fell 72.5 cents to $147.05 on Friday, down $1.50 for the week. November feeder cattle fell $3.20 to $174.625, down $3.625 for the week.
The global financial markets are facing a historically turbulent period, which is cause for concern in agriculture futures. The U.S. stock indexes are in or close to bear market territory and recession fears are growing, which could somewhat crimp consumer demand for higher-priced beef cuts.
Wholesale beef prices continued lower reaching 18-month lows. Choice boxed beef closed on Friday at $243.75 per cwt., down $4.88 for the week. Select boxed beef closed Friday at $220.13, up 82 cents for the week.
Estimated cattle slaughter was 662,000 for the week, up 22,130 head from last year. The year-to-date total was estimated at 25.359 million head, 1.5% higher than last year.
