Cash fed cattle came in lower this week. the five-area live price averaged $145.80 on Friday, down $2.45 from last week. This average is based largely on non-cash trade as few sales took place in the cash market given the declines.
In Oklahoma City auctions feeder steers were called steady to $1 lower, while feeder heifers and all calves were steady. Mississippi auctions were also steady this week with all transaction types showing no movement in ether direction compared to last week.
Well, markets took a pause this week. Last Friday’s Cattle on Feed report was bullish when compared to pre-report expectations and the market reacted accordingly. Also, U.S. equity markets continue to struggle leaving many wondering what the general economic conditions underlying the slump mean for beef demand. This Friday, the annual cattle inventory report was released (link) and showed a continued decline in the overall size of the cattle herd, but some signs of expansion were noted. The overall report came in under expectations which could provide a lift to start the new trading week.
And the trend lower continued in beef trade with Choice carcasses down $6.45, at $231.98, and Select down $5.28, at $231.16, compared to the previous week putting the spread is at $0.82.
*** The livestock price and production tables (link) will be updated soon.
Note: All cattle and beef prices are quoted in dollars per hundredweight.