Cattle Rally Takes a Breather, Cattle on Feed Down 4%
After notching record high prices three consecutive weeks, cash cattle prices slipped a little below steady, though few analysts and fewer cowboys believe the market has peaked.
Moderate volumes of cattle traded in the North at $180 live and $288 dressed, $2 lower than the previous week. Cattle in the South traded at $174 to $175 live, steady to $1 lower.
Feeder cattle traded mixed from $2 lower to $4 higher. Calves sold steady to $6 higher.
Wholesale beef prices continued marching higher. Choice boxed beef closed Friday at $306.60 per cwt., up $3.98 for the week. Select boxed beef closed at $283.87 per cwt., up $3.94 per cwt.
Weekly cattle slaughter was estimated at 622,000 head, 42,000 less than the previous week. The total for the year is estimated at 3.1% lower than 2022.
Friday’s USDA cattle on feed counted 11.6 million head on April 1, down 4.4% from a year ago. Placements during March totaled 1.99 million head, 1% below last year. Marketings of fed cattle during March totaled 1.98 million head, 1% below 2022. The on feed inventory included 7.12 million steers, down 6%, and 4.5 million heifers, down 2%.
The COF report was somewhat disappointing as the trade anticipated a 5% decline on feed and a 5.2% decline in placements, which were off just 0.6%. Analysts suggest that placement number may prove bearish for futures. The marketings number matched trade expectations.
At the CME, the expiring April live cattle contract ended the week at $173.975, down 12.5 cents from Thursday, while most-active June futures edged up 17.5 cents to $164.525. The latter represented a weekly rise of 80 cents. The expiring April feeder contract fell $1.25 to a Friday close of $203.775. May feeders inched up 5 cents to settle at $212.40, which marked a $4.50 weekly advance.
