Unexpected, for sure, but welcome nonetheless, negotiated cash cattle prices likely posted new highs for the year this week.
Cash cattle trade was called active in the North with mostly at $145 to $149 per cwt. and $230 to $232 dressed, mostly $4 higher than last week. The South saw trade volumes light to moderate at mostly $138 to $140 per cwt., $2 to $3 higher.
The previous high was posted the first week of May at $143.42 per cwt. Weekly slaughter is estimated at 670,000 The largest weekly slaughter this year was posted the week ending May 21.
At the CME, June live cattle rose 27.5 cents to $138.025, a weekly rise of $1.825. August cattle also gained 27.5 cents, settling at $136.575, up 37.5 cents for the week. August feeders rose $1.65 to $172.95, down $1.525 for the week.
With the heat dome over the central Plains likely to continue over the weekend, feedlots may suffer more death losses. The cattle that survive will take time to recover, further reducing the number of animals available to packers and forcing cash prices even higher. Gains will probably be limited by somewhat more comfortable conditions in the southern Plains. Indeed, cattle in the Southwest have been bringing significantly less than their northern counterparts, so that pattern will likely continue.
