COF Down Slightly, Fed Cattle Higher Again
Market leverage continues to move toward the cattle feeder. Early week bids of $132 only found a few takers. Later week sales in the South occurred at $133 to $134 per cwt., $2 to $4 higher. Dressed prices in the North jumped to $209 to $210 per cwt., $2 to $3 higher.
It seems doubtful cash will sustain that strength next week, since the packing industry will be operating a on a reduced schedule around the Thanksgiving holiday. Conversely, packers will be buying cattle for processing in late November and early December.
CME December live cattle futures rose 37.5 cents on Friday to $133.525, while February live cattle rose 45 cents to $137.70, up 1.2% for the week and the highest closing price since Sept. 1. January feeder cattle fell 45 cents to $160.925.
Cattle on Feed
USDA’s November 1 Cattle on Feed estimate was 11.9 million head, a number down slightly from the same month last year.
Placements during October totaled 2.25 million head, 2% above October 2020. Marketings of fed cattle totaled 1.79 million head, 5% below last year.
Net placements were 2.19 million head. During October, placements of cattle and calves weighing less than 600 pounds were 575,000 head, 600-699 pounds were 500,000 head, 700-799 pounds were 470,000 head, 800-899 pounds were 425,000 head, 900-999 pounds were 190,000 head, and 1,000 pounds and greater were 85,000 head.
Other disappearance totaled 59,000 head during October, 6 percent below 2020.
Estimated cattle slaughter was 677,000 head compared to 666,192 last year. Total slaughter year to date was 28.588 million, or 3% larger.
Wholesale beef prices were modestly lower for the week. Choice boxed beef closed at $278.41 per cwt., down $5.89 from the previous week. Select closed at $263.83 per cwt.
