Cash cattle trade was moderate to active last week with a broad range of prices. Cattle sold in the North at $140 to $146.50 per cwt., with most cash sales at $142 live and $226 dressed, $2 lower than the previous week. Trade I the South was called light to moderate at $138 per cwt., also $2 lower than the previous week.
Feeder cattle were called $1 to $5 lower and calves were steady to $4 lower.
At the CME, June live cattle rose 7.5 cents to $131.575, down 50 cents for the week. August feeder futures fell $1.275 to $163.925, down $4.10 for the week.
Wholesale beef prices were higher for the week as retailers looked to stock up for the Memorial Day weekend, typically the peak demand period for beef. The Choice cutout was quoted Friday afternoon at $262.17 per cwt., $3.22 higher last week. Select closed at $243.02 per cwt., down 88 cents from the previous week.
Friday’s USDA Cattle on Feed report counted the May 1 total at 2% higher than last year and was called neutral to slightly bearish for futures markets on Monday as a 1.3% year-to-year drop was anticipated.
April feedlot placements were expected to fall 4.6% below the comparable year-ago figure, but USDA estimated placements down just 0.9% from last year. April marketings at 1.893 million head (down 2.2% annually) essentially matched expectations for a 2% drop. The May 1 feedlot inventory was 11.967 million head, up 2.0% from last year, whereas a 1.3% year-to-year drop was anticipated.
Seasonally, large fed cattle supplies historically tend to combine with diminished demand to drag cash cattle prices lower during June. Analysts see little reason to expect a divergence from that pattern this year. Exaggerated late-May and/or early-June cash losses could amplify seasonal futures weakness, but more modest cash declines could help the discounted nearby contracts stabilize.
