Fed Cattle Charge To New Spring Highs
The bulls broke loose during last week’s fed cattle trade, setting new cash highs for the year in the process. Fed cattle volumes were called moderate to active in the North as cattle traded at $168 to $172 per cwt. live, and the bulk at $172, or $4 to $6 higher. Dressed prices were $268 to $276 per cwt., $2 to $6 higher. In the South cattle sold from $166 to $168.50 per cwt., $2 to $4 higher.
The prior average cash high for this market was $165.40 and was established the week ending March 10. In 2015 for the last week in March, cash averaged $167.57.
Given the growing seasonal and cyclical shortage of prime- and select-grade cattle available in feedyards, analysts look for cash prices to rise again next week. Years in which cattle weights are running below year-ago levels during the spring tend to see the late winter-early spring cash rally last longer and move higher than in other years, with a shortage of market-ready feedlot supplies being the driving factor.
Feeder cattle sold mostly $1 to $5 higher. Calves sold mixed from $2 lower to $4 higher.
Wholesale beef prices posted gains for the week. Choice boxed beef rose $2.19 per cwt. to close Friday at $282.07 per cwt. Select boxed beef closed Friday at $270.72, up $1.48 for the week.
Nearby April live cattle futures ended Friday at $168.35, up 80 cents from Thursday. June cattle futures climbed $1.125 to $162.125. That represented a weekly surge of $5.525. May feeder futures closed at $205.25, up 80 cents on the day and $7.70 on the week.
