COMMENTARY BY TREY FREEMAN
Cash fed cattle markets moved higher this week, with the South trading $230 per hundredweight, up $4. In the North, trade occurred at $228 to $230 per hundredweight, $5 to $8 higher. Dressed trade occurred at $355 per hundredweight, up $10 to $15.
The USDA estimates this week’s kill at 596,000 head, 4,000 less than a week ago and 14,000 less than a year ago.
Boxed beef moved slightly lower this week, with USDA reporting the average for choice at $359.37 per hundredweight, down 1.3%. The rib primal continues its seasonal fade, dragging choice lower, below a level not seen since May.
Live and feeder cattle futures extended their gains. Live cattle futures finished with gains of $1.10 to $2.65 per hundredweight, with the greatest in the nearby contracts. Feeder cattle futures finished $0.05 to $1.00 higher. Many contracts in live and feeder cattle futures have breached gaps that have been hanging on their respective charts since October. But prices met staunch resistance in the gaps, leaving them only partially filled. Overall, it was a choppy week in futures, with relatively narrow trading ranges compared to what we’ve seen over the past two months.
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