The short-term cattle outlook appears bullish. Active trading in the fed cattle market throughout the week pushed prices $1 to $4 higher. Trade in the North was $145 to $148 live and mostly $234 dressed. The South saw moderate volumes at $141 to mostly $142 per cwt., $2 higher.
At the CME, October live cattle rose 50 cents to $145.25, up 75 cents for the week. September feeders fell 52.5 cents to $184.75, still up $1.375 for the week.
Feeder cattle traded steady to $8 higher. Calves traded mostly $2 to $5 higher.
USDA’s Cattle on Feed report could pressure prices Monday. Drought-induced July placements were reported at 1.8% higher compared to industry expectations for a 1.5% decline. Total cattle on feed inventories were up 1% to 11.224 million head. Marketings were down 4% from last year on one less business day.
The August on-feed number was the second largest from a historical standpoint, although inventories declined from July 1 by 116,00 head.
Wholesale beef prices ended the week steady to lower. Choice boxed beef closed Friday at $264.28, down 91 cents from last week. Select closed at $237.94, down $1.65 from last week. Beef packers are earning solid margins, so they have incentive to continue bidding actively for fed cattle. Meanwhile, the choice-select spread was quoted at $26.32 today, thereby indicating the supply of market-ready fed cattle remains extremely tight.
