Cattle Markets Spike Higher in Post-Holiday Joyride
Cash fed cattle markets jumped higher in all regions in the holiday-shortened trading week. Cattle in the North traded at $185 to $188 per cwt. live, $3 to $5 higher, and $290 to $292 dressed, $5 to $6 higher. Cattle trade in the South was called active at $175 to $180 live, $4 to $9 higher than the previous week.
The Monday-Thursday average for the Five-Market area reached $181.35. That implies the week’s average will be the third-highest on record behind the two weekly readings from mid-April (around $183.37 and $181.88).
Estimated weekly slaughter for the holiday-shortened week is 573,000 head, down 35,000 head from the same week last year.
Feeder cattle traded $1 to $8 higher and calves traded steady to $6 higher.
At the CME, expiring June live cattle futures rose $1.525 to $176.425 Friday, while most-active August settled at $172.90, up 52.5 cents on the day and up $7.725 on the week. August feeders rose 25 cents to $241.90, which represented a weekly advance of $7.975.
Wholesale beef prices pushed higher for the week. Choice boxed beef closed Friday at $309.93 per cwt., up $6.00 for the week. Select boxed beef closed Friday at $290.93 per cwt., up $6.01 for the week.
Analysts expect cash markets will remain strong next week, but active trading the past two weeks, plus packer access to June-contracted cattle, will limit upside potential. Sustained beef gains could spur fresh futures strength since the summer-fall contracts remain well below cash values.
