Cowboys Are Firm Sellers As Cash Moves Higher
Cash fed cattle traded higher in a light trade this week, with some cattle feeders holding firm to asking prices yet to be answered. Fed cattle in the North sold from 4159 to $162 live and $256 to $258 dressed. Trade in the South was light at $161 to $162 per cwt., $1 higher. Feedlots in the southern plains were notably passing on bids of $162 on Friday.
Feeder cattle traded mixed at $2 lower to $3 higher, while calves sold steady to mostly $5 higher.
Wholesale beef prices posted a significant rally for the week. Choice boxed beef closed Friday at $281.84 per cwt., up $11.38 for the week. Select boxed beef closed at $265.89 per cwt., up $11 .60.
Slaughter continues shorter, with the estimated weekly total at 627,000 head, down 43,000 from the same week a year ago. The year-to-date total was an estimated 34.42 million head, down 1.9% from last year.
April live cattle futures rose 57 1/2 cents Friday to $164.65, closing near mid-range after setting a new contract high. For the week, April live cattle rose 70 cents. March feeder cattle futures gained 30 cents to $186.525 and nearer the session high. For the week, March feeders gained 12 1/2 cents. The push to a new contract high in April live cattle futures, including a technically bullish weekly high close, sets the table for follow-through technical buying when trading resumes next Tuesday.
Cash cattle market fundamentals remain solid and the technical posture for live cattle is fully bullish. Packer margins have improved significantly from the rising wholesale prices, likely prompting packers to actively compete for tightening supplies of market-ready cattle. The USDA monthly Cattle-on-Feed report next Friday is expected to show placements down around 1% from year-ago levels.
