Feeders Gaining Momentum As Prices Rally
Higher asking prices were finally met with packers eager to acquire inventory this week. Cattle in the South traded at $130 per cwt., $4 to $5 higher than last week’s weighted averages, and $2 higher than early week sales.
Cattle in the North also traded at $130, with dressed trade mostly at $204 per cwt., $4 higher than last week, and $2 higher than early week sales.
Wholesale beef prices also advanced for the week with Choice boxed beef closing Friday at $289.54 per cwt., up $3.82 from last week. Select closed Friday at $267.52 per cwt., up $4.15 for the week.
The recent resurgence in wholesale prices seemingly reflects improved export demand for U.S. beef, which in turn has prompted accelerated buying from beef packers. Grocers may also be buying more aggressively with the first weekend of December, a prime week for beef features, being separated significantly from Thanksgiving on November 25.
The week’s cattle slaughter was estimated 650,000 head, versus 651,764 head last year. The total year to date was 28.254 head, 3.1% above last year. USDA reported slaughter weights for the week of oct 23 saw a decline of 4 pounds per head to 918 lbs. per carcass, 11 lbs. lower than the prior year.
December live cattle futures rose $1.175 to $131.80, up 2.0% for the week and the highest settlement since $132.20 on Sept. 2. January feeder cattle rose $1.425 to $159.60, up 2.2% on the week.
