Cash Fed Cattle Grudgingly Higher
While cattle traded higher for the second consecutive week, the action was frustrating for feeders who see fundamentals that suggest much higher prices. The volume of cattle changing hands was light to moderate, with the South mostly at $114 per cwt., $1 higher. Trade in the North occurred at $112 to $114 live and $178 to $180 dressed, $2 higher than the previous week.
Those are the highest cash cattle prices since Memorial Day, yet fed cattle seem undervalued. Market-ready cattle are plentiful, but boxed beef cutout prices are running 8% higher than a year ago and packer margins remain above $300, according to the Sterling Beef Profit Tracker.
Friday’s Choice boxed beef cutout closed at $234.51 per cwt., up just 61 cents from last Friday, but $11 higher than two weeks ago. Select boxed beef closed at $221.47 per cwt., up $8.32 from the previous week.
Feeder cattle traded from $2 lower to $4 higher.
CME April live cattle rose to the highest in more than a year and June cattle scored a new contract high on expectations for improving beef demand and tighter supplies to drive cash markets higher.
April live cattle futures rose 2.5 cents Friday to close at $123.775, capping a $1.924 gain for the week. June live cattle fell 22.5 cents to $119.975, paring its weekly gain to $2.375. March feeders fell $1.225 on Friday to $138.275, paring the weekly gain to 55 cents.
Weekly estimated cattle slaughter was 653,000 head compared with 631,261 head last year. Total year-to-date was 3.340M head, 5% below last year.
