Tightening Supply Pushes Fed Prices Higher
Cash fed cattle trade was called moderately active last week, with the South at $142 per cwt., $1 higher. Cattle in the North sold $143 to $144 per cwt. live and $226 to $228 dressed, steady to $1 higher. Feeder cattle traded $2 to $6 lower and calves $1 to $5 lower.
Ever tightening supplies of fed cattle continue to support the fed cattle trade and cattle feeders and ranchers are gradually seeing market leverage shift in their direction. Traders anxiously anticipate next Friday’s cattle on feed report.
October live cattle futures fell 12.5 cents to $145.50, down 17.5 cents for the week. October feeder cattle rose 32.5 cents to $181.25, down $4.325 for the week. Cattle market bulls were encouraged by this week’s cash trade, which could support buying interest in futures early next week.
Estimated cattle slaughter was 667,000 head, 17,398 more than the same week a year ago. Year-to-date slaughter was estimated at 24.02 million head, up 1.4% from last year.
Wholesale beef prices moved lower with Choice boxed beef declining $5.38 for the week at $252.40 per cwt. Select boxed beef declined $8.08 for the week to $226.65.
