Cash Cattle Market Begins August With A Rally
Cattle markets reversed a month-long lower trend with decent gains in all regions. Trade in the North was called moderate at mostly $140 to $144 per cwt. live and $225 to $232 dressed, steady to $2 higher. Cattle in the south traded at $135 to $136, steady to $1 higher.
CME futures took out their June and July highs on Thursday, and expiring August live cattle futures ended the week rising 17.5 cents to $137.875, while most-active October gained 22.5 cents to $143.875. The October close marked a $2.55 weekly advance. September feeder futures advanced 85 cents and settled at $183.425, up $1.875 on the week.
Cash market gains this week suggests the upward price pressure will persist through mid-August. Grocers will accelerate their wholesale beef purchases as they prepare for beef features for Labor Day, and cash and futures are expected to work higher.
Estimated weekly slaughter was 651,000 compared to 644,342 last year. Year-to-date slaughter was estimated at 20.125 million, up 1.2% from last year.
Wholesale beef prices moved lower on the week. Friday’s Choice boxed beef closed at $263.88 per cwt., down $5.36 from last week. Select closed at $238.67 per cwt., down $3.58.
Feeder cattle were called $2 to $6 higher and calves $1 to $5 higher. Slaughter cows traded steady to $7 higher.
