Cash Cattle Trade Steady, Feeders Higher
Cash cattle trades a week following the Thanksgiving rally saw steady prices, but the steadily declining supply of harvest-ready cattle will continue to shift bargaining leverage to producers. Packers, after enjoying historic profits last year, now find themselves coping with margins at breakeven and below.
Cattle traded in the North at $157 to $158 per cwt. live and $245 to $249 dressed, both steady with last week. Cattle in the South sold at $155 per cwt., also steady. Packers are expected to remain aggressive bidders in the near term.
Wholesale beef prices were lower for the week. Choice boxed beef closed Friday at $249.93 per cwt., down $1.90 for the week. Select boxed beef tumbled $9.91 per cwt. to close Friday at $224.56.
Feeder cattle traded steady to $4 higher and calves sold $1 to $5 higher.
February live cattle futures rose 45 cents on Friday to $155.875, up 75 cents for the week. January feeder cattle jumped $1.375 to $182.45, up $4.15 for the week.
Friday’s technically bullish weekly high closes in February live cattle and January feeders set the table for followthrough technical buying in both markets early next week. Cash market fundamentals remain overall bullish.
