The above futures activity helped to embolden cattle feeders last week as they held their market ready cattle until very late in the week, passing on packers’ offers of steady
prices. The resulting very small spot market trade continued to see prices higher through the end of Friday when the top of the week’s market values were established. The resulting $158.17/cwt. steer price was $2.65/cwt. higher than the week prior. Even so, the spot February Live Cattle contract was trading at $160.70/cwt. this Tuesday, indicating more blue sky potential for prices near term.
Carcass weights continue to dip in latest reports with significant declines in Nebraska and Colorado, the feeding states hit the hardest with large snow volumes and muddy pen conditions. In the Southern plains, carcass weights are holding up much better as cattle have experienced comparatively smaller impacts. Weights in the Western corn belt are also holding up but winter impacts in that area have shown some significance. In
sum, all steer carcass weights are 10 lb. lighter than a year ago. This, coupled with slaughter totals smaller than a year ago at this time, has resulted in a lower total beef tonnage for this week in 2023.
Comprehensive boxed beef cutout values have been on a steep decline for the past three weeks. This compares to a strong upward price direction early in the first quarter of 2022. The CAB cutout value is $17.48/cwt. (-5.9%) lower than a year ago, Choice is down $16.90/cwt. (-6%) from a year ago and Select is off $24.71/cwt. (-9%) in the same comparison.
Last week’s price spreads between beef quality grades and brands narrowed rapidly in seasonal fashion but remain
record-wide for this time of year. Select was the only grade that saw a price increase on the week but this is also a reflection of the record-low proportion of Select beef in the mix for the fourth week of the year at 12.47% of fed cattle carcasses.
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