(Editor’s note: This market report covers information available as of Wednesday afternoon, due to an earlier WLJ press time.)
Boxed beef prices dropped sharply over the week, just two weeks away from Easter.
Live cattle futures traded mostly sideways over the week. The April contract gained about a dollar to close at $234.42, and the June contract gained about $2 to close at $233.85.
“The real headline of the day for the live cattle complex was the break in boxed beef prices as Choice cuts ended the day $3.80 lower than Select cuts,” wrote ShayLe Stewart, DTN livestock analyst, in her Wednesday midday comments. “This is due to two main reasons: retailers are pushing back on these high beef prices, and the market is drastically short supplied of thin, grinding type products and has a surplus of Choice cuts.”
Cash trade through Wednesday afternoon was light, with only about 1,000 head sold. No market trend was noted for live cattle, but dressed cattle traded for $372.
Stewart projected cash trade through the rest of the week to trade steady to lower as a result of lower boxed beef prices.
Cash trade for the week ending March 22 totaled 53,715 head. Live steers sold from $232-238, and dressed steers sold from $372-380.
Slaughter through Wednesday totaled about 315,000 head, compared to 308,000 head a week earlier. Total slaughter for a week earlier is estimated at 508,000 head. Actual slaughter for two weeks earlier was not available as of press time.
Boxed beef prices closed lower over the week, down about $9 to $391.69 on the Choice cutout and down about $3 to $395.49 on the Select cutout.
“Poor wholesale beef demand pre-Easter is no surprise but many weren’t that concerned because the weekly production schedule has been historically small all quarter, especially in recent weeks,” wrote Cassie Fish, market analyst, in The Beef on Wednesday. “Expectations of a larger slaughter this week evaporated in the face of a building, unsold boxed beef inventory.”
USDA released its latest Cattle on Feed report on March 20. The report showed cattle and calves on feed as of March 1 at 11.5 million head, slightly below the same time last year. Placements were 4% higher at 1.61 million head. Marketings were 7% lower, and other disappearance was 17% lower.
Feeder cattle
Feeder cattle futures closed higher over the week. The March contract gained more than $6 to close at $361.87, and the April contract gained more than $5 to close at $353.35.
The CME Feeder Cattle Index gained a couple of dollars to close at $361.59.
Corn futures traded steady to lower, down 2 cents on the May contract to $4.67 and down 3 cents on the July contract to $4.77.
Missouri: Joplin Regional Stockyards in Carthage sold 6,500 head on Monday. Compared to a week earlier, at the open, feeder steers sold $5-15 lower and feeder heifers sold steady to $5 lower. A group of benchmark steers averaging 729 lbs. sold from $340-372, averaging $358.55.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to the last sale, at the mid-session, feeder steers sold mostly steady and steer calves sold $5-15 higher. Feeder heifers and heifer calves sold steady to $5 higher. Benchmark steers averaging 782 lbs. sold from $350-380.50, averaging $365.10.
South Dakota: Sioux Falls Regional in Worthing sold 3,577 head on Monday. Compared to the previous auction, sales were too lightly tested a week earlier for an accurate comparison, with the exception of 900-950 lbs. heifers, which sold steady to $1 higher. Benchmark steers averaging 721 lbs. sold between $392-420, averaging $406.62. — Anna Miller Fortozo, WLJ managing editor
