Cash fed cattle trade was called light to moderate in all regions. Cattle in the North traded at $156 to $159 per cwt. live and $245 to $249 dressed, steady to $1 lower than last week. The South traded at mostly $154 per cwt., also $1 lower.
Feeder cattle sold at auction from $2 lower to $2 higher, calves ranged steady to $4 higher.
Packer margins are estimated to be $50 to $100 short of breakeven, their worst losses in at least seven years. That provides incentive to push prices lower but showlists are smaller and cattle feeders are firm in their asking prices.
Wholesale beef prices are trending lower with the Choice cutout closing Friday at $248.93 per cwt., down $1 for the week and down $3 over the last two weeks. Select closed Friday at $221.26 per cwt., down $3.30 per cwt. for the week.
February live cattle rose $1.625 to $155.55 on Friday, down 32.5 cents for the week. January feeder cattle rose 45 cents to $183.925, up $1.375 for the week and the highest close since Sept. 19.
Live and feeder cattle futures finished the week with technically bullish closes, which may lead to followthrough buying early next week. A two-month rally in cash cattle showed signs of leveling off this week but tight supplies and a longer-term outlook for price strength should keep futures underpinned.
