Fed Cattle Trade Steady to Lower Ahead of Futures' Bullish Friday
Cash cattle trading was called moderate to active last week with most of the action on Thursday. Cattle in the South sold steady at $141 per cwt., with Northern trades at $142 to $145 per cwt. Dressed sales were mainly $226 to $227 per cwt, generally $2 weaker.
Feeder cattle prices were called mixed at $3 lower to $5 higher. Calves mostly $5 lower to $3 higher.
Fed cattle supplies are now past their peak and are expected to decline into year’s end.
October live cattle gained $1.30 on Friday to $145.675, up $1.125 for the week and the contract’s highest closing price since Aug. 17. October feeder cattle gained $1.175 to $185.575, up 62.5 cents for the week.
October live cattle posted a technically bullish weekly high close, which may generate follow-through speculator buying early next week. Feeder cattle also posted firm gains despite strength in corn futures. Futures continue to draw support from expectations for tight supplies of market-ready animals in the months ahead, which many traders appear to believe will pull the cash market out of a recent slump.
Wholesale beef prices saw moderate declines. Choice boxed beef closed Friday at $257.26 per cwt., down $2.16 for the week. Select boxed beef closed Friday at $234.73 per cwt., down $3.85 on the week.
The weekly slaughter total was reduced by the Labor Day holiday. Slaughter was estimated at 604,000 head, down 34,000 head from the previous week but up 25,000 head from the same week last year.
