Cash trade was mostly steady over the week, and futures were mixed on the board. The big question in the marketplace is what the packers’ next move will be amid tighter cattle supplies.
Live cattle futures were up slightly with the April contract up a little over a dollar to $175.45 and the June contract up just under a dollar to $165.20.
“Futures shook off the news of a mechanical outage at a major packing plant and instead is focused more on its significant discount to cash and the awareness it will be the lead option beginning tomorrow at noon,” Cassie Fish, market analyst, wrote in The Beef on Thursday.
Cash trade through Thursday totaled about 50,000 head. Live steers sold from $171-181, averaging $179. Dressed steers sold from $280-286, averaging $284.63.
Cash trade for the week ending April 23 was 73,778 head. Live steers averaged $178.63, and dressed steers averaged $287.82.
Slaughter through Thursday was projected at 496,000 head. Estimated slaughter for the week prior is 622,000 head. Actual slaughter for the week ending April 15 was 611,491 head. The average dressed steer weight was 894 lbs., up 2 lbs. from the prior week.
Boxed beef prices were higher, with the Choice cutout up about $4 to $311.07 and the Select cutout up less than a dollar to $289.09.
“Demand is certainly there, as evidenced by the rally in beef values. Will the packers increase throughput to meet it? Or will they keep throughput constrained?” Fish asked. “Talk is widespread that at least one major plant will be dark one to two days next week because of tight fed cattle supplies.”
Feeder cattle
Feeder cattle futures for the week were lower, with the April contract down several dollars to $202.67 and the May contract down about a dollar to $211.52.
The CME Feeder Cattle Index was down $1.50 to close at $202.41.
Corn futures nosedived lower, with the May contract down 36 cents to $6.27 and the July contract down 45 cents to $5.81.
“Receipts continue large at auction barns and video auctions across the country despite the smaller pool of cattle. High prices encourage cattle owners to market cattle early,” the Cattle Report said.
Iowa: Russell Livestock in Russell sold 3,651 head Monday. Compared to the last auction, steer calves under 500 lbs. sold mostly higher on a light test, while steers 500-650 lbs. sold $2-5 lower. Heifer calves under 450 lbs. sold mostly lower on a light test, while heifers 450-650 lbs. were $2-9 higher. Benchmark steers averaging 733 lbs. sold between $200-209.25, averaging $208.15.
Missouri: Joplin Regional Stockyards in Carthage, MO, sold 8,000 head on Monday. Compared to the week prior, at the mid-session, feeder steers sold $2-5 higher. Feeder heifers sold steady to $2 higher. A group of benchmark steers averaging 789 lbs. sold for $204.
Nebraska: Tri-State Livestock in McCook sold 2,038 head Monday. There were not enough comparable sales in the weight classes from last week for an accurate comparison. A group of steers averaging 739 lbs. sold for $214.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,650 head on Monday. Compared to a week earlier, at the mid-session, feeder steers and heifers sold steady. Steer and heifer calves were too lightly tested for a trend, but a steady undertone was noted. Benchmark steers averaging 780 lbs. sold between $197-205.50, averaging $199.86.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,496 head Monday. Compared to the last auction, feeder steers sold $3-7 lower, with instances of $20 lower, except 600-650 lbs. traded $4-5 higher. Feeder heifers sold steady to $4 lower, with instances of $13 lower, except 900-950 lbs. traded steady to $2 higher. Benchmark steers averaging 781 lbs. sold between $204.50-217 and averaged $209.81.
Texas: Lonestar Stockyards in Wildorado sold 2,150 head Tuesday. Compared to the previous auction, feeder steers and heifers sold steady to $3 higher. Benchmark steers averaging 736 lbs. sold for $206. — Anna Miller, WLJ managing editor
