Futures saw a rebound over the week, but cash trade remained limited with packers keeping slaughter levels in check as they assess spring needs.
Live cattle futures gained a few dollars, inching back closer to that $200 mark. The February contract gained about $2 to close at $199.40, and the April contract gained about $3 to close at $196.12.
“The futures complex is in a critical position, hovering between both the market’s 40-day moving average and the market’s 100-day moving average, seeming to almost clearly say, ‘either market direction is possible, it’s just going to depend on what surfaces fundamentally,’” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
“Until the cash cattle market trades, we continue to watch earnestly,” she added.
Cash trade through Thursday totaled less than 5,000 head. Live cattle sold for $198, and dressed cattle sold from $311-313.
Cash trade through Feb. 23 totaled 48,723 head. Live steers averaged $199.65, and dressed steers averaged $315.18.
“From the sounds of it, packers have quite a few contracts and formula cattle to harvest in March which could limit their need for negotiated cattle purchases,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Packers are expected to keep slaughter levels in check until they get some help from improved beef demand.”
Slaughter through Thursday totaled about 457,000 head, compared to 447,000 head a week earlier. Total slaughter for a week earlier is expected at 563,000 head. Actual slaughter for the week ending Feb. 15 was 562,260 head. The average steer dressed weight was 954 lbs., 3 lbs. above a week earlier.
Boxed beef prices traded mostly sideways over the week. The Choice cutout and Select cutout values each lost about a dollar to close at $311.18 and $302.13, respectively.
The latest Cattle on Feed report released Feb. 21 showed cattle and calves on feed as of Feb. 1 1% below last year. Placements were 2% higher, and marketings were 1% higher. Other disappearance totaled 26% below 2024.
Feeder cattle
Feeder cattle futures regained their momentum, up $10 apiece over the week. The March contract closed at $276.45, and the April contract closed at $275.55.
The CME Feeder Cattle Index gained 86 cents to close at $279.37.
Corn futures dropped, down more than 30 cents apiece to $4.64 on the March contract and $4.81 on the May contract.
Iowa: Russell Livestock in Russell sold 3,062 head on Monday. Compared to the last auction, steers 500-550 lbs. sold $7 lower and 700-750 lbs. steers sold $3 lower. Other steers sold mostly $5-20 higher. Heifers 550-550 lbs. sold $7 lower and 700-750 lbs. sold $4 lower, while others sold mostly $3-25 higher. Benchmark steers averaging 726 lbs. sold for $291-304.75, averaging $297.60.
Missouri: Joplin Regional Stockyards in Carthage sold 4,500 head on Monday. Compared to a week earlier, feeder steers and heifers sold $2-10 higher. Benchmark steers averaging 731 lbs. sold from $276-280, averaging $279.12.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,500 head on Monday. Compared to the last full test two weeks earlier, feeder steers sold steady to $3 higher and feeder heifers sold mostly steady to $2 higher. Steer calves sold $3-8 higher, and stocker steers sold $10-15 higher. Stocker heifers and heifer calves sold $10-20 higher. Benchmark steers averaging 723 lbs. sold from $275-295.50, averaging $285.04.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 5,860 head on Monday. Compared to the last auction, feeder steers and heifers sold steady to $5 higher. Benchmark steers averaging 725 lbs. sold for $282-306, averaging $299.66. — Anna Miller, WLJ managing editor
