US cattle futures came under heavy pressure late last week, dragging cash cattle prices lower as traders reacted to weaker beef prices, softer retail features ahead of Memorial Day and a larger-than-expected USDA cattle on feed report, The AG Center said.
Live cattle sales that had started the week at US$/cwt 264-265 eased to mostly US$/cwt 260, with some northern trades reported at US$/cwt 258 by Friday. Dressed cattle prices also slipped from US$/cwt 415 early in the week to US$/cwt 408-410.
Market participants pointed to the bearish surprise in the USDA report, which showed April placements up 6%, above expectations, although some analysts argued the increase likely reflected cattle moved earlier than usual off winter wheat rather than a lasting shift in supply trends. May placements are already expected to run below year-ago levels.
Last week’s cattle slaughter totaled 528,000 head, down 48,000 head from the same week last year, as negative packer margins continue to weigh on processing volumes. With the shortened holiday week ahead, slaughter could fall below 450,000 head, though fed cattle supplies are expected to remain tight.
