Packers Aggressive, Cash Cattle Rally Continues

Cash fed cattle traded in Texas and Kansas at $118 early Wednesday before climbing to $119 later in the day, which was $2 to $3 higher than last week’s trade. In the north live prices traded at $117 to $119, with dressed prices at $187 to $188 per cwt., $2 to $4 higher.

The winter storm crossing the Midwest disrupted some slaughter facilities. The weather and strong beef demand helped push both cash and futures prices higher.

Choice beef cutout prices rose 40 cents on Wednesday to $232.24, while Select lost $1.65 to $210.64. The Choice/Select spread was $21.60.

December live cattle futures closed up $1.025 at $121.425 and February live cattle gained $1.025 to $126.70 and posted a contract high. January feeder cattle futures rose $1.70 to $143.325. Live cattle bulls have positive fundamentals and technical on their side, which should continue to support higher prices in the near term. Wintry weather on the Plains and Upper Midwest have prevented some cattle from coming to market.

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By: Drovers

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