Northern Trade Higher, South In A Standoff
Packers were forced to pay up for cattle in the North, but the trade in the South was slow to develop on Friday. As much as packers want to resist, the bull market seems to be gathering steam ahead of Labor Day. Cowboys have the leverage and it seems to gain in their favor each week.
The Monday-Thursday average climbed to $187.55 per cwt., which was up 98 cents, but most cattle sold in the North on Friday at $188 live and $295 dressed, up $2 from the previous week.
This week’s average will probably mark the second-highest weekly figure on record, behind the early-June peak for the five-market area near $188.75. This seemingly sets the stage for a run at a fresh record next week since packers failed to keep the market in check despite slaughter cutbacks and relying heavily upon contracted cattle this week. Much will depend upon the wholesale market. That is, Choice cutout remained mired in the $300.00-$305.00 range this week, but packers may be able to pass their higher costs on to grocers as they buy actively for planned Labor Day features.
Feeder cattle traded mostly steady to $4 higher while calves sold stead to $5 higher.
At the CME, August live cattle futures ended the week having jumped $2.40 to $180.90 Friday afternoon. Most-active October climbed $1.60 to $182.90. The latter marked a weekly rise of $3.30. Expiring August feeder futures surged $1.575 to $249.525, while the October contract leapt $2.00 to $255.425, with the latter quote representing a weekly advance of $4.425.
