Cattle feeders have slowly gained market leverage over the past few weeks as cattle numbers tighten. Packers grudgingly bid higher money for cattle on the High Plains and the Corn Belt but their margins are rapidly being squeezed.
Cash cattle traded in the south at $144 per cwt., $1 higher than last week. In the North sales occurred at $147 to $148 live and $229 to $230 dressed, mostly $1 to $2 higher than last week.
Wholesale beef prices moved higher during the week. Choice boxed beef closed on Friday at $246.07 per cwt., up $2.32 for the week. Select boxed beef closed Friday at $216.13 per cwt., down $4.00 for the week.
Estimated weekly slaughter total was 664,000 head, even with last week but 7,000 more than last year.
Feeder Cattle sold mostly $1 to $3 lower and calves from $1 to $4 lower.
December live cattle futures rose 17.5 cents to $148.05, up $1.00 for the week. November feeder cattle fell 80 cents to $175.625, up $1.00 for the week.
Seasonally tight cattle supplies are likely to keep a floor under cash prices over at least the next month. After rising in mid-September, steer dressed weights fell from 918 to 915 pounds per head during the week ended September 24. The Choice-Select spread at $28.89 early Friday indicates the tighter supply of cattle and beef grading Choice or better.
