Fed Cattle, Feeders Trade Lower
Cash fed cattle traded at $109 to $110 per cwt., and $173 to $174 on a dressed basis, mostly $1 to $2 lower than last week. The trade occurred in the North, with no trade reported from the South at press time.
Compared to last week, feeder steers and heifers sold steady to $3 lower. AMS reporters noted continued large numbers of cattle going to market due to drought conditions.
“Year-to-Date auction receipts are 7.7% larger than the previous five year average,” AMS said.
Drought conditions producing low water levels and poor hay production are the culprit for motivating producers to sell cattle at this time year.
“Missouri is the epicenter of drought in the Midwest as parts of the state have had very hot and dry weather in recent weeks and months, and some parts have been dry for the last year or longer. As of the latest report near 98 percent of the state is showing on the drought monitor,” AMS said.
Compared to last Friday, Choice beef cutout closed at $5.32 per cwt. higher at $211.38, and Select closed $2.83 higher at $200.92, putting the Choice-Select spread at $10.46.
