Markets: Cash Cattle Markets Nearing Historic Highs
Negotiated cash cattle prices traded higher for a fourth consecutive week as packers scrambled for inventory. Trade in the North was called active at $187 to $188 per cwt. live and $298 per cwt. dressed, $2 to $3 higher live and $6 higher dressed compared to the previous week. Cattle sold in the South at $186 per cwt. live, which is $1 higher compared to the previous week.
Feeder cattle traded mixed at $2 lower to $4 higher and calves sold $1 lower to $6 higher. Calf prices are at all-time highs and have advanced $40 per cwt. since Jan. 1. Cows sold $1 to $7 higher.
Wholesale beef prices closed the week higher. Choice boxed beef prices were quoted at $311.90 on Friday, $4.86 per cwt. higher for the week. Select boxed beef closed Friday at $302.40, up $4.97 per cwt. for the week.
Weekly cattle slaughter was estimated at 599,000 head, down 26,000 from the same week last year. The year-to-date total was estimated at 5.357 million, down 5.3% from last year.
At the CME, cattle futures rebounded Friday from Thursday’s big losses, with nearby April live cattle rising 30 cents to $187.25. That represented a weekly decline of 35 cents. Meanwhile, expiring March feeder futures surged $1.80 to $249.275 and most-active April climbed 95 cents to $252.125. The latter quote marked a weekly drop of $1.975.
Thursday’s live cattle and feeder cattle declines likely reflected industry concerns about packer demand. Packers have recently made sharp reductions to their operational speeds due to tight market-ready fed cattle supplies and negative margins.
