Northern Cash Cattle Higher, COF Placements 2.1% Lower
Cash cattle trade was called active again this week, with the North trading at $144 to $150 per cwt. live and $230 to $238 dressed. The live bids were steady with last week while the dressed bids were steady to $4 higher. Cattle in the South traded at a significant discount, mostly $137 to $138 live, $1 to $2 lower.
At the CME, August live cattle fell 50 cents to $133.375, down $3.20 for the week. August feeder cattle fell $2.15 to $172.70, down 25 cents for the week.
The boxed beef cutout declined for the week with Choice $2.50 per cwt. lower, ending at $264.98 per cwt. Select boxed beef fell $0.44 per cwt. lower closing at $245.02 per cwt. Analysts believe high production and overall softer demand will continue to push prices lower.
Weekly cattle slaughter was estimated at 666,000 head, about 6,000 higher than the same week a year ago. Year-to-date slaughter was estimated at 16.241 million head, up 1% from last year.
USDA’s Cattle on Feed report totaled 11.8 million head on feed on June 1, which was 1% higher than last year and the highest June total since the data series began. The report, however, looks supportive for futures as the May placement data of 1.869 million head was down 2.1% from last year and well below the average analyst estimate. The more predictable marketings total came in 2.4% over the comparable year-ago figure, whereas a 3% rise was expected. The trade anticipated a 1.4% increase in the on-feed number.
