Cash Cattle Rally in Progress; COF Down 4%

Cattle feeders continued gaining market leverage this week as prices moved higher and slaughter levels declined.

Feedlot
Feedlot
(Shelby Chesnut)

Cash cattle prices took another step higher this week as wholesale beef prices continued a contra seasonal rally. Trading was light to moderate, but cattle in the North sold at $164 live and $260 to $262 dressed; $2 to $5 higher than last week. A light trade in the South was noted at $164 per cwt., and asking prices at $165, $2 to $3 higher.

Feeder cattle sold steady to $5 higher while calves traded $3 to $8 higher on strong demand.

Wholesale beef prices finished the week slightly lower on Friday, but with significant weekly gains. Choice boxed beef closed at $287.28 per cwt., $5.44 higher. Select boxed beef traded at $277.08 per cwt., a weekly gain of $11.19 per cwt.

Estimated weekly slaughter totaled 618,000 head, down 9,000 head from the previous week and 33,000 head lower than the same week a year ago.

Expiring February live cattle futures ended the week at $165.20, up 5 cents. Still, that marks a weekly advance of $1.625. Most active April cattle also rose 5 cents to $165.375, ending the week 72.5 cents above last Friday’s close. March feeder futures skidded 15 cents to $189.075, thereby marking a weekly rise of $2.55.

Cattle on Feed

Friday’s USDA cattle on feed report totaled 11.7 million head on feed Feb. 1, 2023, in 1,000-plus feedlots, down 4% from February 2022.

Placements in feedlots during January totaled 1.93 million head, 4% below 2022. Marketings of fed cattle during January totaled 1.85 million head, 4% above 2022. The numbers should prove supportive of futures on Monday’s opening.

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