Fed Cattle Steady, Boxed Beef Steadily Declines
Cash fed cattle prices continued to trade in a wide range at steady prices. Cattle in the South traded at $115 to $120 live and $178 to $190 dressed.
The week’s best news was found in steadily increasing slaughter totals. Even during a holiday-shortened week, estimated cattle slaughter was 524,000 head, 31,000 less than last week and 64,000 less than last year. Analysts say that is 90% of what they call normal. The week ending May 22 saw slaughter at 555,000 head compared to 647,000 head for the same week in 2019.
Total slaughter year-to-date was 12.657 million head, 937,000 head or 6.9% below last year. Steer dressed weights have now topped 900 pounds for the week ending May 16.
Boxed beef prices continued dropping at nearly the same rate they advanced in late April and early May. Friday’s Choice boxed beef cutout closed at $363.34 per cwt., or $37.22 per cwt. lower than last Friday. Select closed Friday at $340.07 per cwt., or $36.02 lower than last Friday.
Larger slaughter numbers and declining wholesale beef prices will narrow packer margins and improve retail margins in the weeks ahead. Narrowing packer margins and weaker post-Father’s Day beef demand will add to the pressure on fed cattle prices.
Feeder steers and heifers sold steady to $5 higher at auctions this week. Agricultural Marketing Service reporters called demand good even as some auctions were closed for Memorial Day. Auction receipts totaled 138,200 for the holiday-shortened week, compared to 204,800 last week and 91,200 last year.
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