Cash trade was mostly steady over the week, as it has been for the past several weeks. Futures sank lower another week.
Live cattle futures traded generally steady over the week but closed lower. The April contract lost over a dollar to close at $138, and the June contract lost about $3 to close at $134.
Through Thursday morning, about 90,000 head sold on the cash market. Trade started off early in the week, but it tapered off midweek. Live steers sold mostly from $137-140, averaging closer to $138.85. Dressed steers sold from $219-225, averaging about $222.
“Many believe fed cattle prices will hold the low-$130s for a summer low, even though that would mean prices would drop only $6 or $7 from this week’s price level,” wrote Cassie Fish, market analyst, in The Beef. “That might be possible, but it does not seem probable.”
Cash trade through the first week of April totaled 97,797 head. Live steers averaged $139.49, and dressed steers averaged $222.62.
The national weekly direct beef type price distribution for the week of March 28 to April 4 was the following on a live basis:
• Negotiated purchases: $139.50.
• Formula net purchases: $141.76.
• Forward contract net purchases: $146.03.
• Negotiated grid net purchases: $140.14.
On a dressed basis:
• Negotiated purchases: $222.46.
• Formula net purchases: $222.72.
• Forward contract net purchases: $221.98.
• Negotiated grid net purchases: $223.09.
“Fed cattle slaughter, while not anticipated to be as large as 2019, will be larger than the last 2 years’ Q2 fed cattle slaughter levels,” Fish said. “And it is widely known carcass weights are record high and non-fed slaughter is really big because of the drought.”
Slaughter through Thursday is estimated at 495,000 head, several thousand head more than a week earlier. Slaughter through the last week of March is projected at 639,000 head. Actual slaughter for the week ending March 26 totaled 657,471 head.
“Packers will be able to sell more pounds per head than anytime in history during this coming May and June—considered to be one of the best beef demand times of any year,” Fish said.
Boxed beef prices traded mostly steady but closed slightly higher over the week. The Choice cutout gained about $2 to close at $271, and the Select cutout gained about a dollar to close at $261.22.
Feeder cattle
Feeder cattle futures felt the brunt of losses over the week. The April contract lost about $5 to close at $156.40, and the May contract lost about $7 to close at $159.47.
The CME Feeder Cattle Index lost 17 cents to close at $155.59.
Corn made some gains over the week. The May contract gained about 9 cents to close at $7.57, and the July contract gained 17 cents to close at $7.50.
“April showers bring May flowers (and grass), so grass calf buyers will be watching the forecast to calibrate their optimism for the coming months, even if corn prices get another boost on Friday,” wrote Elaine Kub, DTN contributing analyst, in her Thursday closing comments.
Kansas: Winter Livestock in Dodge City sold 2,462 head on Wednesday. Compared to a week earlier, feeder steers under 700 lbs. sold on a light test with a weak undertone noted, while those over 700 lbs. sold $5-8 lower. Feeder heifers under 550 lbs. sold $6-8 lower, 550-650 lbs. sold $2-4 higher and over 650 lbs. sold $4-6 lower.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head on Monday. Compared to the previous sale, feeder steers and heifers traded steady. Benchmark steers averaging 717 lbs. sold between $162-168 and averaged $164.50.
Nebraska: Tri-State Livestock in McCook sold 1,340 head Monday. Compared to the last auction, weights over 850 lbs. were steady to $3 higher on good demand. Otherwise, there were not enough sales to show any other comparisons. Benchmark steers averaging 780 lbs. sold between $150.50-158 and averaged $156.46.
New Mexico: Roswell Livestock in Roswell sold 904 head Monday. Compared to the previous auction, steer calves and feeders under 500 lbs. sold $3 lower, 500-700 lbs. were mostly $5 lower and a few over 700 lbs. traded $1 higher. Heifer calves and feeders under 500 lbs. sold $3-6 higher, over 500 lbs. were $3 lower and a few over 600 lbs. traded $10 lower. A group of steers averaging 736 lbs. sold for $148.50.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,000 head on Monday. Compared to the previous sale, at the mid-session, feeder steers and heifers sold steady to $3 lower. Steer calves and heifers sold $6-10 lower. Benchmark steers averaging 730 lbs. sold between $152.85-175.25, averaging $159.30.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,906 head on Monday. Compared to a week earlier, feeder steers sold $2-4 lower, except 600-650 lbs., which sold $2-4 higher. Feeder heifers sold $1-3 lower, except 700-850 lbs., which sold steady to $2 higher. Benchmark steers averaging 740 lbs. sold between $158-169 and averaged $165.13. — Anna Miller, WLJ managing editor
