Cash Cattle Steady to Weaker, Feeders Mixed
Cattle feeders and packers were in a standoff most of the week, with beef packers able to push the Monday-Thursday average lower for the five direct-market areas falling $1.23 to $153.84. Cash trading was described as moderate in both the North and the South. Cattle in the North traded at $248 dressed, which was steady with the previous week. Cattle in the South traded at $156 per cwt., called $1 higher.
This week’s estimated cattle slaughter total reached 659,000 head, up 4,000 or 0.6% from the comparable year-ago figure, despite the feedlot population running about 3% under last year. Packers may be persuading producers to take less by pointing to sustained wholesale weakness; choice cutout has recently been stuck around $270.00, whereas it started the year around $285.00. Most analysts are calling for cash prices to increase in the coming weeks as supplies decline.
Feeder cattle were mixed from $2 lower to $2 higher. Calves traded in a wide range from $4 higher to $3 lower.
At the CME, nearby February live cattle ended Friday unchanged at $156.725; that marked a weekly rise of 10 cents. With the January futures expiring at $179.575 Thursday, nearby March feeder futures advanced 62.5 cents to $183.475, which represented a $2.50 weekly advance.
Wholesale beef prices declined again, with Friday’s Choice boxed beef closing at $267.76 per cwt., down $3.96 for the week. Select boxed beef closed Friday at $250.54 per cwt., down $5.89 for the week.
Cattle feeders anticipate stronger prices in the weeks ahead. One positive note is the fact steer dressed weights, a strong indicator of currentness of marketings, fell to 914 pounds per head the week ended Jan. 14, an 8-pound year-to-year decline. Analysts expect weights to continue sliding in the weeks just ahead, with the potential for an exaggerated drop to the usual May low. History shows years in which marketings remain current, as signified by reduced steer weights, are routinely marked by stronger late-winter and early-spring price advances.
