Cattle Markets Struggle With Steady
Cash fed cattle prices traded mostly steady in what most describe as a disappointing market. Cattle feeders began the week asking higher prices but cash bids of $138 bought most cattle in the South, steady with the previous week. In the North cattle sold at $138 live and $220 to $222 dressed.
Feeder cattle traded mixed at $1 lower to $3 higher.
CME June live cattle rose $1.15 to $137.075 on Friday, the contract’s highest closing price since Feb. 28 and a gain of $4.125 for the week. April feeder cattle rose $1.225 to $162.325. Friday’s strong close in April futures implies the industry expects further gains.
Choice boxed beef values closed Friday at $258.16 per cwt., while Select closed at $250.65 per cwt. Retailers may curb their buying after the middle of next week through the end of March, which may weigh on short-term prospects for fed cattle.
Expanding drought has forced more cattle into feedyards, and next week's cattle on feed report is likely to show the largest March 1 number on record. Drought remains a top concern as now 61% of the continental U.S. is under some classification of drought.
