Cash fed cattle prices continue slipping lower with the Monday-Thursday five-area direct price at $144.45 per cwt., $2 to $3 lower than last week. Cattle in the South sold relatively steady at $136 to $137. Cattle traded in the North in a wide range of $140 to $150, with the bulk in the mid-range and $2 to $4 lower. Dressed sales were $230 to $232.
Analysts found it surprising to see prices decline more substantially in the north than in the South, since northern feedlot supplies have consistently proven much tighter in recent weeks. One has to suspect packers have recently been and continue to be much more aggressive in their southern purchases than in the North, simply due to the huge price disparity between the regions. More seasonal weakness seems likely next week.
Cash cattle slippage seemed to undermine futures again Friday, with August live cattle ending the week at $134.925, down 47.5 cents on the day, but up 97.5 cents on the week. August feeder futures also fell, dropping $2.55 to $176.35 at Friday’s close. However, that marked a weekly increase of $4.625.
Long lines of cattle trailers waiting at livestock auctions were in the news this week as ranchers hit by drought are forced to reduce their herds. Prices for slaughter cows were quoted $4 to $10 lower.
