Cash Cattle Rally in Progress; COF Down 4%
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.
