Cattle Trade Higher, Beef Continues Rally
Cash fed cattle traded at modestly higher prices this week in light to moderate volumes. Cattle in the South sold from $119 to $120, steady to $1 higher. Cattle in the North sold mostly $120 to $121 live and $191 dressed, $2 to $3 higher.
Cattle slaughter was estimated at 640,000 head, compared with 519,123 last year. The total year-to-date was 12.236 million head, 5.7% higher than last year.
Friday’s Choice boxed beef price closed at $316.94 per cwt., $9.06 per cwt. higher than last Friday. Select closed at $293.19 per cwt., $2.92 per cwt. higher than last week.
June live cattle futures closed down $0.30 at $115.30 for a technically bearish weekly low close Friday. For the week, June live cattle lost $0.725. Meantime, August feeder cattle futures rose $0.65 Friday at $151.15 for a bullish weekly high close. On the week, August feeders rose $6.875.
A promising start to the week in live cattle futures fizzled fast with Thursday’s steep losses. Bulls do not have any momentum heading into trading next week, suggesting sideways-at-best futures price action. Feeder cattle futures, meanwhile, had a good week and benefitted from the big drop in corn futures prices. How corn prices fare next week will help push price action in feeder cattle futures.
