Fed cattle markets looked to be moving higher again last week as market analysts predicted late week trade would come at prices $1 above the previous week when trade unfolded. A strong late-winter storm predicted for the southern Plains had feedlot managers sticking to prices in the $85 range, and analysts called for trade in a range of $83-84 live and $133-134 dressed when it finally got underway last week, prices which would be steady to $1 higher than the prior week?s trade.

The fed cattle market appeared to be gaining again last week ahead of any serious trade volume. Although there was some light trade early, most significant volume looked to be waiting for the end of the week and the cattle on feed report before getting started.

Fed cattle trade was starting to unfold early last week in Nebraska and Colorado at $80-80.50, or 50 cents to $1 lower than the prior week. In the southern Plains, a few dressed cattle were sold at $130 in Texas, while Kansas dressed cattle sales came in at $127 on Wednesday, lower than the previous week.

Some early fed cattle trade last week added $1 to the previous week prices in Nebraska where a handful of cattle traded to a regional packer at $131 dressed.

A steep two-day decline in the futures markets forced feedlots to the table with inventory earlier than anticipated last week, with most of the week?s northern trade taking place last Wednesday afternoon. Live sales in Nebraska sold $2 lower, from $78-80, and dressed sales sold $3 to $4 lower, from $127-129.

The fed cattle market appeared to be set for a Friday deal last week as only light trade had developed in the north at $131 dressed. Analysts were calling the week?s action steady to as much as $1 higher when it developed. Packer margins were being squeezed last week and they were cutting production as a result.

The downward trend in the boxed beef market was offset by the tight supply of market-ready fed cattle last week. Packers came to the table at midweek offering steady money to prices which were $1 higher than the previous week at $130-131 dressed basis for the early trade last week in Nebraska.

The number of cattle in feedlots in the U.S. as of Jan. 1, 2009, was below most analyst’s expectations when it was announced last week, giving prices a bullish bounce on the following trading day.

Seasonally strong beef demand is right around the corner, or at least that?s what the cattle industry?from bottom to top?is hoping for. Analysts expect January?s higher slaughter rates to slow down somewhat in February as packers and retailers try to deal with their current oversupply of middle meats and a decreased availability of fed cattle.

Northern feedlots sold inventory early in the week last week at lower money in an effort to capture some attractive basis levels. Early trade Tuesday and Wednesday came in Colorado at $81-82.50 live basis, 50 cents to $1 lower than the previous week.