Fed Cattle Near Highest Price Since 2017
The rally in cash fed cattle prices continued this week with packers searching for inventory and bidding higher money. Large volumes traded in all regions. For the first time in a long time cattle feeders have some leverage.
Cattle in the North traded at $132 to $133 per cwt. live, and $207 to $208 dressed, $2 higher live and $4 to $5 higher dressed. Prices in the South were called $2 to $4 higher at $132. The weighted average this week will be close to $133 for the first time since 2017.
Despite surging cash prices, cattle futures ended the week on a soft note. The flat futures reaction to this week’s cash strength suggests the industry is anticipating a short-term stall and/or setback in cash cattle values as the holiday season looms. Bears are likely relying upon the downward reversal suffered by wholesale beef values.
December live cattle edged up 25 cents to $132.125, a 42.5-cent weekly rise. Meanwhile, rising grain and soy prices pushed January feeder futures down $1.075 to $156.25, down $3.35 for the week.
Wholesale beef prices were modestly lower. Choice closed Friday at $284.30 per cwt.
