Fed cattle trade remained quiet last week. Iowa saw a few Holstiens trading for $1.80 on Tuesday. Nebraska and Iowa trade on Wednesday saw a few hundred head sold for $123.5-124 live and $1.95 dressed.
Cattle and calves on feed for slaughter market in the U.S. for feedlots with capacity of 1,000 totaled 11.3 million head on Oct. 1, 2011. The inventory was 5 percent above Oct. 1, 2010, and the second highest October inventory report since the series began in 1996.
Despite the lower cutout values last week, fed cattle prices were higher. The fed cattle market strengthened at $1 to $2/cwt. higher last week with sales at $120-121 in the south Plains and $120-122 in the Corn Belt. Dressed sales were reported at $189 to $192/cwt.
Futures markets were steady to mixed as futures traders waited for the cash markets to develop most of the week. With packer margins continuing to be in the red, tight cattle supplies were looking for firm cash prices.
Analysts have suggested for weeks the fed cattle market could rally this fall as supplies of market-ready cattle would tighten. Aggressive packer bidding the past two weeks, despite flat wholesale beef prices, is seen as evidence packers are hunting a little harder for the cattle they need, according to analysts.
Cattle futures traded higher last week, pulling the live and dressed cash markets with it. The October contract was trading at $122.20 Thursday and deferred contracts were trading in the same range. April seems to be where the next price advance is and was trading at $126.
Trade remained sluggish most of last week with only a few token packer bids of $116 live and $1.83- 1.84 dressed being passed by bullish feedlot managers asking $120 live and $1.90 dressed. "The way it looks right now, a $118/$1.86-$1.88 trade seems reasonable," according to Troy Vetterkind with Vetterkind Cattle Brokerage.
Fed cattle markets were slow to develop again last week. Futures markets were showing some strength early last week until Thursday when the news of a broader equity market sell-off took place, dragging nearly all commodities down.
Fed cattle trade was slow to develop last week after lackluster meat sales over the Labor Day weekend. Futures markets were stronger on live cattle, setting the stage for stronger fed trade later in the week.
Cash fed cattle trade was slow to develop last week coming into a Labor Day-shortened production week. Cattle feeders were offering cattle at $114 live and $181 dressed but packer offers were at $110-111 and $177-178, respectively. Trade was expected to be steady to $1 lower than the prior week.
Fed cattle prices dropped last week as a result of weakness in cash prices and decreased demand from the consumer segment. On the Plains, cattle traded for $112.50-113 live and $180-181 dressed. Corn Belt trade ranged from $179-$181 dressed and $113 live.
With the third-highest Aug. 1 inventory since the series began in 1996, The National Agricultural Statistics Service reported that the number of cattle on feed in feedlots of 1,000 head or more in the U.S. rose to just above 10.6 million. This inventory was 8 percent above Aug.
Plains fed cattle traded last week at $113-$114 in Texas, with dressed sales in Nebraska at $182. Wednesdays negotiated cash trade was inactive on light demand in the southern Plains and Colorado and limited on light demand in Nebraska and the western Plains.
Fed cattle trade was opening with sharply higher prices last week as a surge in boxed beef prices and improving packer margins helped fuel the market. Although volume was light through midday last Thursday, early dressed trade had been reported on light volume at $185 and analysts were predicting that the volume live trade would
Cash fed cattle trade was slow to develop last week as cattle feeders held out for higher money. The light, early trade seemed to indicate the tactic was working, with the light volume trading at $109.50 to $111 in the Corn Belt, although there were not enough animals trading hands at midday last Thursday to call the week’s trend.
The drought is forcing cow liquidation in the southern Plains, and it’s also pushing calves and lightweight feeder cattle into feedlots, according to USDA’s July Cattle on Feed report. The National Agricultural Statistics Service reported that the number of cattle on feed in feedlots of 1,000 head or more in the U.S. rose
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Fed cattle trade slipped again last week as high temperatures and declining demand hit the market. Analysts have been calling for a late July summer low, so the market could be close to hitting its bottom in the near term. In the southern Plains last week, live fed cattle traded $2-3 lower at $108-109 while dressed cattle in the North were
Fed cattle trade was slow to get started last week with feedlots holding off on packer bids, hoping to keep the market steady despite the hot weather settling into much of the country. Packers, on the other hand, were hoping to push prices lower as a result of expected weakness in the beef markets in the weeks
There are still expectations that beef demand going into the later half of July will weaken and that has the market reacting cautiously to any upside price advances. The full production week ahead should refill any beef supplies that moved through the pipeline prior to the Fourth of July holiday and domestic sales were about in line with