Cattle Trade Steady to Higher, COF 1% Higher
Prices for fed cattle trended higher throughout the week. Early week sales were mostly steady at $138, but buyers were forced to up their bids later in the week. Cattle traded in the North from $140 to $142 per cwt., with a few in Iowa at $143. Dressed prices were $220 to $223.
CME April live cattle led its nearby counterparts modestly higher on Friday, climbing 80 cents to $140.475, while June cattle added 42.5 cents to close at $137.375, up 30 cents for the week. May feeder futures fell $1.175 to $165.325, down $2.125 for the week.
USDA’s monthly Cattle on Feed report released on Friday found 12.2 million head on feed March 1 in yards with capacity for more than 1,000 head. That total was 1% higher than March 1 of last year and represents the highest March inventory since the series began in 1996.
Placements in feedlots during February totaled 1.85 million head, 9% above 2021. Net placements were 1.79 million head.
Marketings of fed cattle during February totaled 1.83 million head, 5% above 2021.
The bigger-than-expected jump in placements seems to be driven by poor pasture conditions due to drought in the Plains. Texas (up 40,000 head), Kansas (up 50,000 head), Nebraska (up 55,000 head) and Colorado (up 10,000 head) accounted for nearly the entire 157,000-head increase in placements. Feedlots placed more cattle in every weight category except for heavyweights (1,000-plus lbs.), which were steady and accounted for only 3.0% of the total. Placements increased 7.5% in lightweights (under 600 lbs.), 10.2% in 6-weights, 8.6% in 7-weights, 12.5% in 8-weights and 8.0% in 9-weights compared to year-ago levels.
