Cash Cattle Higher, COF Placements Drop
Cattle prices traded steady to higher in the last full week ahead of Thanksgiving. Cattle in the North sold in a moderate trade at $153 to $156 per cwt. live and $240 to $244 dressed, steady to $1 higher than the previous week. Cattle in the south traded at $150 to $151 per cwt., which is also steady to $1 higher.
November’s much -anticipated Cattle on Feed report didn’t disappoint as it brought bullish news ahead of the holidays. Total inventories were down 2% at 11.454 million head. Placements dropped 6% from last year and were 9% below the 5-year average and the lowest level in 20 years. Marketings were pegged up 1% at 1.8 million head.
At the CME, cattle futures markets saw a good week with December live cattle rising Friday 32.5 cents to $153.075, up $1.55 for the week. February live cattle rose 45 cents to $155.85, up $2.60 for the week and a three-week high. January feeder cattle rose 80 cents to $180.775, up $1.20 for the week.
Today’s technically bullish weekly high closes in live cattle and feeder cattle may lead to followthrough buying Monday. Continued cash strength may support futures next week. Next week’s holiday-shortened trading week may have beef packers backing off on cash bids due to the lighter holiday slaughter schedule.
Wholesale beef prices were lower for the week. Choice boxed beef closed Friday at $254.87 per cwt., down $4.07 per cwt. for the week. Select boxed beef closed at $232.83 per cwt., down $2.44 per cwt. for the week.
Feeder cattle traded $2 lower to $2 higher and calves traded $1 lower to $3 higher.
Weekly cattle slaughter was estimated at 674,000 head, down 5,000 head from last year. Year-to-date slaughter was estimated at 30.053 million head, up 1.6% from last year.
