Cash Fed Cattle Eclipse Previous Record Highs
Packers chased finished cattle into the evening on Wednesday last week and the result was another rally in cash prices to new record highs.
Cash fed cattle prices traded in the North at $174 to $177 per cwt., eclipsing the previous mark set in November 2014 of $171.38. Dressed prices reached $275 to $280 per cwt. Both categories are $2 to $6 higher than the previous week. The South traded at $170 live which is $3 to $4 higher.
The surge in cash prices reflects the shrinking supply of market-ready cattle and declining weights.
Wholesale beef prices also posted gains for the week. Choice boxed beef traded $290.98 per cwt., up $3.91 per cwt. Select boxed beef closed the week at $275.78 per cwt., up $5.06 per cwt.
Feeder cattle traded $2 to $6 per cwt. higher while calves traded from $3 to $10 higher. Market cows traded mixed from $2 lower to $3 higher.
Expiring April live cattle futures jumped $2.675 higher to $171.075 at Thursday’s close, while most-active June futures leapt $2.80 to $163.10. The latter represented a weekly gain of 97.5 cents. Nearby April feeder futures soared $2.80 to $200.625, while May feeders rocketed up $3.30 to $205.40, which marked a gain of 15 cents from last Friday’s close.
News that cash cattle had traded actively in the $170.00 area in the South and up to $178.00 in the North Wednesday afternoon caused cattle and feeder futures to gap higher on Thursday’s opening and follow through to the upside.
