Cash Cattle Steady To Firm, COF Up 1.6%
Cash cattle markets carried a firmer tone most of the week but hopes for solid price gains were dashed by two days of declining futures prices. The bulk of the week’s trade occurred again at $114 – the seventh consecutive week. Trade in the North was called light to moderate at $114 to $115, with a handful at $116 early. Dressed cattle sold from $180 to $182, steady to $2 higher. Trade in the South was light to moderate, with most selling at $114 with a few at $115.
Trade for the week confirmed cattle feeders lack leverage in a market where packers find plenty of inventory to keep plants humming. Yet, the packers’ grip on steady prices is loosening as front-end supplies of cattle are beginning to tighten.
April live cattle futures closed down $0.175 Friday at $118.40. June live cattle lost another $0.975 to close at $118.675 and for the week fell $1.75. May feeder cattle futures fell $1.95 at $144.675 and for the week lost $3.70.
Estimated weekly cattle slaughter was 624,000 head, compared to 660,293 last year. Total year to date was estimated at 2.524 million head, 3.3% below last year
Choice boxed beef prices gained $3.07 for the week, closing Friday at $230.09 per cwt. Select boxed beef lost $1.34 per cwt. to close at $220.11.
USDA released Cattle on Feed numbers Friday with the total at 12.0 million head March 1, 2021. The inventory was 1.6% higher than last year and the second largest on feed number since the series began in 1996.
The report was consistent with analysts pre-report estimates.
Placements during February totaled 1.68 million head, 1.9% below 2020. Net placements were 1.63 million head.
During February, placements of cattle and calves weighing less than 600 pounds were 335,000 head, 600-699 pounds were 295,000 head, 700-799 pounds were 465,000 head, 800-899 pounds were 409,000 head, 900-999 pounds were 125,000 head, and 1,000 pounds and greater were 55,000 head.
Marketings of fed cattle during February totaled 1.73 million head, 2.4 percent below 2020.
Other disappearance totaled 58,000 head during February, unchanged from 2020.
