Higher, higher, higher goes the market. Cash trade saw an increase of several dollars, and futures followed.
Live cattle futures traded steady to higher, with the April contract up $3.50 to $175.50 and the June contract up $1.40 to $164.50.
Cash trade for the week skyrocketed—as much as $10 higher. Through Thursday afternoon, cash trade totaled about 60,000 head. Live steers sold from $170-186, and dressed steers sold from $285-290.
“Many seem surprised at the cash market’s strength, but (following) a tough winter, the North always finds itself short of Choice market-ready fed cattle numbers,” Cassie Fish, market analyst, wrote in The Beef. “And this year, supplies were already going to be down significantly.”
Cash trade through April 10 totaled 102,581 head. Live steers sold from $174-175, and dressed steers sold from $275-280.
“The total number of forward contracted cattle has declined as deferred futures fail to provide sellers a profit margin for feeding,” the Cattle Report wrote. “This will provide more liquidity to the cash markets as packers are pushed into the spot market for more of their weekly slaughter needs. The spread between futures and proforma break-even prices has made it difficult for packers to negotiate forward contracts.”
Slaughter through Thursday was about 489,000 head, on pace with a week earlier. Projected total slaughter for the week prior is 603,000 head. Actual slaughter for the week ending April 1 was 644,766 head. The average steer dressed weight was 898 lbs., up 3 lbs. from the prior week.
Boxed beef prices are also increasing with the grilling season approaching. The Choice cutout gained about $11 to close at $300.42, and the Select cutout gained about $7 to close at $283.38.
“Look for wholesale beef values to trade higher for at least another month if not more and to average over $300 for Q2,” Fish said.
Feeder cattle
“The feeder cattle complex is continuing to charge onward and forward as the market is seeing all the support it could have ever wished for,” ShayLe Stewart, DTN livestock analyst, said. “The sheer combination of cheaper corn prices and record-breaking fat cattle prices helps illuminate a bright future for feeder cattle prices.”
Feeder cattle futures traded steady to higher, with the April contract up about $2 to $202.67 and the May contract also up about $2 to $207.80.
The CME Feeder Cattle Index shot up over $6 higher, closing at $199.77.
Corn also traded higher, with the May contract up 9 cents to $6.52 and the July contract up 6 cents to $6.25.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head on Monday. Compared to a week earlier, feeder steers sold $5-14 higher, with the most gain on lighter weights. Feeder heifers sold $4-9 higher. Benchmark steers averaging 772 lbs. sold between $199-203, averaging $199.57.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,400 head on Monday. Compared to a week earlier, feeder steers and heifers sold $5-9 higher, with instances as high as $12 or higher. Steer calves sold unevenly steady, but were lightly tested. Heifers calves were lightly tested, but a higher undertone was noted. Benchmark steers averaging 779 lbs. sold between $193-196, averaging $194.85. — Anna Miller, WLJ managing editor
