Cash Cattle Rally $3, COF Down 1 Percent
Cash cattle trade was called active with packers seeking to add inventory. Cattle sold in the North at $150 to $152 per cwt. live and $232 to $236 dressed, mostly $3 higher. Cattle trade in the South was called light to moderate with prices at $148 per cwt., also $3 higher.
Wholesale beef prices moved $7.09 higher for the week, with Choice closing Friday at 253.71 per cwt. Select boxed beef closed Friday at $224.26 per cwt., $6.22 higher for the week. Retailers have anticipated seasonal slowdown in slaughter volumes and are competing to add inventory.
Estimated weekly slaughter was 673,000 head, up 11,000 head from the same week last year. Year to date total was estimated at 27.37 million head, up 1.6% from last year.
Feeder cattle trade varied regionally with prices $3 lower to $3 higher. Calves were called $3 lower to $2 higher.
December live cattle rose 75 cents to $152.425, a lifetime-high close for the contract, and gained $4.65 for the week. October live cattle gained 70 cents to $150.475, the highest close for a nearby contract since August 2015. November feeder cattle rose 80 cents to $178.35, up $3.575 for the week.
Friday’s technically bullish weekly high closes suggest follow-through chart-based buying early next week.
Friday’s monthly USDA Cattle on Feed Report showed the Oct. 1 feedlot inventory down 0.9% from the same date in 2021, with September placements down 3.8% and marketings up 4.0%. With all three categories in-line with the pre-report estimates, the data is largely neutral and will have little impact on prices. However, declining feedlot inventories paint a bullish picture for both cattle futures and the cash cattle market into 2023.
