Fed Cattle Recap | Cash market rebounds slightly
The cash market for fed cattle was mostly $1 higher and cash sales volume was higher than the previous week.
Ed Czerwien, BEEF Magazine
Mar 24, 2020
As consumers along with the beef complex continue to adjust to the reality of COVID-19, many wonder when the futures market will calm down and cash cattle prices will rebound. The unfortunate answer is nobody knows.
However, Tyson announced that they will offer a one-time assistant payment to cattle feeders this week of $5.00 per cwt live and $7.94 per cwt dressed. That will certainly influence the trade this week. However, it is not known if other packers will do something similar.
Looking first at volume, the Five Area formula sales volume totaled 235,301 head for the week ending March 21, compared with about 264,000 the previous week. The Five Area total cash steer and heifer volume was 131,338 head, compared with about 108,000 head the previous week, so the week saw the largest number in a long time.
National cash sales this week included 58,755 head of 15- to 30-day delivery along with 32,478 from the previous week, so the packers have over 91,000 head to use soon.
Now looking at prices, the Five Area weekly weighted average cash steer price for the week ending March 21 was $109.89 per cwt, which was $1.05 higher compared to the previous week.
The weighted average cash dressed steer price was $173.13 per cwt, which was 92 cents lower. The Five Area weighted average formula price was $178.78, which was $4.72 lower.
more, including audio [3:37 min.]