Following a week of pressure in the cattle markets, there was a positive turn of events toward the week’s end, thanks to the news that USDA has not detected traces of the H5N1 virus in ground beef samples. Still, the market was unable to find momentum higher over the week.
Traders have been hesitant in the marketplace ever since dairy cattle were reported to have tested positive for the avian flu, now coined bovine influenza A virus. USDA announced it is taking measures to prove the milk and beef supply safe by testing milk and ground beef samples, which has helped alleviate some worries.
Live cattle futures lost several dollars over the week. The June contract lost nearly $4 to close at $173.85, and the August contract lost about $5 to close at $171.10.
Cash trade through Thursday afternoon was about 45,000 head. Live steers sold from $185-187.50, and dressed steers sold from $292-295.
Cash trade through April 28 totaled 92,548 head. Live steers averaged $184.28, and dressed steers averaged $294.54.
Slaughter through Thursday totaled about 480,000 head, a few thousand head short of a week earlier. Expected total slaughter for a week earlier is projected at 613,000 head. Actual slaughter for the week ending April 20 was 617,843 head. The average steer dressed weight was 919 lbs., 3 lbs. below the prior week.
“Packers find themselves in a tough spot as their red ink grows and fed cattle supplies are seasonally tight, not unusual in the north in early May,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Their recourse is to keep slaughter schedules as limited as possible, though there is pressure not to short end users, especially in May and June.”
Boxed beef prices were lower over the week, with the Choice cutout down about $2.75 to close at $292.90 and the Select cutout down about 40 cents to close at $287.98.
“No one expected such sluggish wholesale beef demand for early May, but there it is,” Fish said. “It’s clear that retail beef demand, after a great run, has diminished in 2024.”
Feeder cattle
Feeder cattle futures plummeted lower over the week. The May contract lost about $4.80 to close at $241.42, and the August contract lost $6.55 to close at $251.75.
The CME Feeder Cattle Index lost about $1.80 to close at $243.37.
“The market is still trading below its 100-day moving average, but stronger tones are a nice turnaround from the market’s weaker tone seen earlier this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments on Thursday.
Corn futures closed higher, with the May contract up 11 cents to $4.52 and the July contract up 7 cents to $4.59.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold steady in early sales. Benchmark steers averaging 719 lbs. sold from 252-273, averaging $270.65.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to a week earlier, steers over 800 lbs. sold steady to $2 higher and steers under 800 lbs. sold $3-6 higher. Heifers over 800 lbs. sold $3-6 higher, and heifers under 800 lbs. sold steady to $3 higher. Benchmark steers averaging 781 lbs. sold from $262-269, averaging $265.53.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,439 head on Monday. Compared to the sale held two weeks earlier, steers 750 lbs. and under had limited numbers, 800 lbs. sold $4-8 higher and 900 lbs. sold $3-8 higher. Heifers 600-650 lbs. sold mostly steady to $9 higher, 700 lbs. sold $3 higher, 750 lbs. sold $8-12 higher and 800 lbs. sold $2-5 higher. A group of steers averaging 785 lbs. sold for $256. — Anna Miller, WLJ managing editor
