Packers Chase Inventory, Prices Jump Higher
Packers unexpectedly found themselves chasing a limited supply of higher-grading cattle last week. The result was an active trade, especially in the North, where prices jumped $3 to $5 per cwt. higher. Cattle sold from $180 to $182 per cwt. live in the North, and $282 to $286 per cwt. dressed. Trade in the South was called active to moderate at $170 to $171 per cwt., $1 higher.
Feeder cattle traded mostly $1 to $7 per cwt. higher, and calves sold steady to $7 per cwt. higher.
Wholesale beef prices traded higher for the week. Choice boxed beef closed Friday at $303.93 per cwt., up $2.83 for the week. Select boxed beef closed Friday at $284.92 per cwt., up $0.98 for the week.
Estimated weekly cattle slaughter was 625,000 head, 16,000 head lower than the same week a year ago. Year-to-date cattle slaughter was estimated down 3.2% from 2022.
At the CME, June live cattle hit another contract high at $168.40 Friday before ending the day just 5 cents higher at $167.35 on the close. That represented a weekly gain of $1.625. August feeder futures suffered a late drop, falling 77.5 cents and settling at $233.925, which marked a $1.175 weekly slide.
The cattle/beef situation remains quite friendly for producers. That’s best exemplified by this week’s cash trading, with the Monday-Thursday average for fed steers jumping to $177.93, up $3.40 from the week-prior level. Packers still need cattle and their margins are still in the black, so they apparently decided to pay up this week.
