Markets: Cash Rallies to Record Highs; COF Steady

Cash cattle trade was called light with prices rallying near, but not reaching, the $2 summit. USDA’s Cattle on Feed report found larger-than-expected May placements.

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Cash fed cattle advanced again as packers dial back slaughter levels. The market ended the week sitting at all-time highs just two weeks ahead of Independence Day with the North leading the way.

Cattle in the North sold from $197 to $198 per cwt. live and $310 to $312 per cwt. dressed, which is $4 to $6 higher dressed. Cattle in the South sold at $189 to $190 live, which is $3 to $4 higher than last week.

Feeder cattle sold mostly $4 per cwt. higher and calves from $1 lower to $3 higher. Market cows sold $1 lower to $5 lower.

Wholesale beef prices ended the week mixed. Choice boxed beef closed Friday at $322.39 per cwt., up $2.50 per cwt. from last week. Select boxed beef closed at $303.11 per cwt., down 70 cents for the week.

Estimated weekly cattle slaughter was 620,000 head, down nearly 30,000 head from the same week a year ago. The year-to-date total was estimated at 14.970 million head, down 4.4% from last year.

At the CME, nearby live cattle futures rose modestly Friday, while the rest of the complex fell. Expiring June futures rose 52.5 cents to $187.60, while most-active August cattle rose 60 cents to $183.15. That marked a weekly dip of 2.5 cents. August feeder futures dropped $1.45 to $258.375; that represented a weekly decline of $3.60.

Cattle on Feed

Friday’s Cattle on Feed report was called slightly bearish compared to pre-report expectations.

USDA estimated there were 11.583 million cattle in large feedlots on June 1, down 7,000 head (0.1%) from year-ago but 152,000 head more than the average pre-report estimate implied. May placements topped year-ago by 4.3%, whereas traders expected a 1.5% decline. Marketings increased 0.2% from last year, slightly less than expected.

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