Cash trade for the week was off to a slow start, with few bids picked up. Trade was expected to be delayed until later on Friday. The board managed to climb a few dollars higher in the cattle complex.
Live cattle futures were several dollars higher over the week. The February contract gained about $4 to close at $183.77, and the April contract gained $3.40 to close at $186.57.
“Today, futures are retracing some of yesterday’s rally as traders scramble to get a grip on quantifying the implications of a USDA Cattle on Feed report that won’t be released until two weeks from Friday,” Cassie Fish, market analyst, wrote Thursday in The Beef. “And despite all the bullishness, live cattle futures still have not taken out their November high.”
Cash trade was inactive through Thursday afternoon, with less than 2,500 head sold. Live steers sold from $176-179, and dressed steers did not show a market trend.
Cash trade through the week ending Feb. 4 totaled 69,008 head. Live steers averaged $177.81, and dressed steers averaged $279.78.
The national weekly direct beef type price distribution for the week of Jan. 29-Feb. 5 was the following on a live basis:
• Negotiated purchases: $177.76.
• Formula net purchases: $177.60.
• Forward contract net purchases: $188.01.
• Negotiated grid net purchases: $176.49.
On a dressed basis:
• Negotiated purchases: $280.01.
• Formula net purchases: $279.85.
• Forward contract net purchases: $292.43.
• Negotiated grid net purchases: $279.64.
Slaughter through Thursday totaled about 501,000 head, compared to 505,000 head a week earlier. Projected total slaughter for a week earlier is expected at 637,000 head. Actual slaughter for the week ending Jan. 27 was 614,786 head. The average steer dressed weight was 912 lbs., 6 lbs. below the prior week.
“Packers’ margins are red and slaughter has been cut Friday to stem losses. Packers are in no hurry to increase their cattle costs,” Fish said. “Packers know their battle won’t be won in a week but in a series of many weeks managing throughput and letting cattle marketing windows continue to get pushed back.”
Boxed beef prices traded mostly sideways. The Choice cutout gained 7 cents to close at $295.01, and the Select cutout gained 87 cents to close at $284.12.
Feeder cattle
“It’s a near perfect world Thursday for the feeder cattle complex as the futures see ample support from the live cattle contracts trading higher, feeder cattle demand in the countryside remains incredibly strong, fed cash cattle prices are expected to trade somewhat higher again this week, and corn prices continue to drift lower,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
Feeder cattle futures were higher over the week, with the March contract up about $2 to $246.85 and the April contract up $1.40 to $251.92.
Corn futures continue to trade lower, with the March contract down 14 cents to $4.33 and the May contract down 13 cents to $4.45.
The CME Feeder Cattle gained $4.16 to close at $242.11.
“Calf prices are returning to last year’s highs. Competition for the smaller pool of calves will need to occur and some pastures may go unstocked this year,” the Cattle Report wrote on Thursday.
Iowa: Russell Livestock in Russell sold 4,193 head on Monday. Compared to the last auction, steers sold mostly $2-8 higher. Heifers less than 500 lbs. sold sharply higher, while heifers 500 lbs. and greater sold $2-16 lower. Benchmark steers averaging 731 lbs. sold between $246-275, averaging $260.02.
Kansas: Winter Livestock in Dodge City sold 1,834 head on Wednesday. Compared to the last auction, feeder steers 800-1,000 lbs. sold $4-5 higher. Steers 600-800 lbs. sold $2-3 lower. Steer calves 400-800 lbs. sold $5-8 higher. Feeder heifers 400-875 lbs. sold $2-3 higher. Benchmark steers averaging 787 lbs. sold between $225-242, averaging $239.36.
Missouri: Joplin Regional Stockyards in Carthage sold 15,000 head on Monday. Compared to a week earlier, feeder steers sold steady to $4 lower, with feeder heifers steady to $5 higher. Benchmark steers averaging 775 lbs. sold from $230-243, averaging $237.99.
Montana: Miles City Livestock Commission in Miles City sold 1,546 head on Tuesday. Compared to the last auction, feeder steers under 550 lbs. sold mostly $5-10 higher, 550-749 lbs. sold mostly steady to $10 higher and over 750 lbs. were not well compared. Heifer calves under 550 lbs. sold steady to firm, 550-599 lbs. sold mostly $10 higher and over 600 lbs. were too lightly tested to develop an accurate market trend. A group of steers averaging 693 lbs. sold between $268.50-282.50, averaging $269.88.
Nebraska: Bassett Livestock in Bassett sold 4,315 head on Wednesday. Compared to the previous auction, steers 550-700 lbs. traded steady to $7 higher. Heifers 500 lbs. traded $4 lower, and 550-650 lbs. traded steady to as much as $13 higher. Benchmark steers averaging 718 lbs. sold between $265-272.50, averaging $268.37.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 12,000 head on Monday. Compared to the last sale, feeder steers sold steady to $4 higher and feeder heifers sold $3-8 higher. Steer calves sold $3-6 higher, and heifer calves sold $1-5 higher. Benchmark steers averaging 772 lbs. sold from $232-245.50, averaging $240.63.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 5,720 head on Monday. Compared to the last auction, light steers 550-700 lbs. sold mostly $4-7 higher. Heavier steers 750-900 lbs. traded mostly $3-5 higher. Light heifers 500-650 lbs. sold mostly $5-8 higher. Heavier heifers 700-750 lbs. traded $5-7 lower. Yearling heifers 950 lbs. sold $4 higher. Benchmark steers averaging 719 lbs. sold between $252-273, averaging $263.45.
Texas: Lonestar Stockyards in Wildorado sold 1,288 head on Tuesday. Compared to the previous auction, feeder steers and heifers traded mostly $10 higher, with the exception of 600-650 lbs. steers which traded $20 higher. Steer and heifer calves traded mostly $5-10 higher, with instances of up to $20-30 higher on calves under 450 lbs. Benchmark steers averaging 719 lbs. sold between $241-248.50, averaging $246.74.
Wyoming: Winter Livestock in Riverton sold 3,553 head on Tuesday. There were not enough comparable sales two weeks ago for an accurate trend on feeder calves. Benchmark steers averaging 728 lbs. sold between $249-265, averaging $259.52. — Anna Miller, WLJ managing editor
