Cash fed cattle prices rallied for the fourth consecutive week fueled by wholesale beef prices surging higher. Futures prices followed suit with several contracts at 7-week highs. Market fundamentals remain bullish and feedlots hold heavy leverage in the current environment.
Trade in the North was active at $190 live and $300 dressed, prices $3 to $4 higher live and $4 to $5 higher dressed compared to the previous week. Trade in the South was called moderate at $186 lives, $2 higher than last week.
Feeder cattle traded $1 lower to $4 higher while calves sold steady to $5 higher. Market cows traded $2 lower to $5 higher.
Boxed beef prices moved significantly higher. Choice boxed beef closed Friday at $313.45 per cwt., $18.88 per cwt. higher than the previous week. Select boxed beef closed at $297.40 per cwt., up $13.23 per cwt. from the previous week.
At the CME, anticipation of further short-term cash and wholesale strength seemed to power fresh gains in cattle and feeder futures Friday. June live cattle futures climbed $2.025 to $181.05, ending the week having gained $4.90 since last Friday. Expiring May feeder futures rose $1.875 to $246.725, while most-active August jumped $2.50 to $259.85. The latter represented a weekly gain of $8.95.
Weekly estimated cattle slaughter was 598,000 head, down 24,000 head from the same week a year ago.
