Cash trade was slow to get started over the week, but futures remained green on the board.
Live cattle futures traded steady to higher, with the June contract up a little over a dollar to $162.95 and the August contract also up a little over a dollar to $160.80.
The bulk of cash trade took place Thursday, although the week’s volume was still lighter at less than 50,000 head. Live steers sold from $169-177, and dressed steers sold from $275-278.
Cash trade for the week ending May 7 totaled 86,560 head. Live steers averaged $174.14, and dressed steers averaged $280.91.
“The price spread between the northern Plains and southern Plains isn’t going away this week,” wrote the Cattle Report. “With smaller numbers offered this week in the south, packers may lose some of the leverage to transport cattle north because they will be needed for southern beef plants. The Choice/Select spread will continue to play a role in the spread. Younger animals from last year’s calf crop have historically contributed to lower grading percentages in the north.”
Slaughter through Thursday was estimated at 506,000 head, 10,000 head more than a week earlier. Projected slaughter for a week earlier is 623,000 head. Actual slaughter for the week ending April 29 was 626,853 head. The average dressed steer weight was 890 lbs., down 2 lbs. from the prior week.
Boxed beef prices were lower, with the Choice cutout down about $4 to $305.72 and the Select cutout down about $3 to $284.58.
“By cheapening up their cattle cost, aided greatly by the fifth week of continued small weekly fed cattle slaughter, and boxed beef values holding together, packers saw another profit margin improvement,” Cassie Fish, market analyst, wrote in The Beef on Monday.
Feeder cattle
“The feeder cattle complex is trading mostly higher as the market warmly welcomes the onset of cheaper corn prices again this week amid a live cattle market that’s also trading higher,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Feeder cattle futures also traded steady to higher, with the May contract up just under 50 cents to $204.12 and the August contract up about $3 to $226.07.
The CME Feeder Cattle Index lost $2.13 to close at $199.40.
Corn futures were lower, with the May contract down 14 cents to $6.32 and the July contract down 7 cents to $5.82.
Iowa: Russell Livestock in Russell sold 3,152 head Monday. Compared to the previous auction, steers under 600 lbs. sold mostly $2-9 lower, while 600-650 lbs. steers sold $3 higher. Heifers under 500 lbs. sold $7 higher, while 500-600 lbs. sold steady to $7 lower. Benchmark steers averaging 784 lbs. sold between $193-212.85 and averaged $208.90.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers sold steady to $4 lower, with feeder heifers under 600 lbs. selling $3-5 lower. Heavier steers sold steady. Benchmark steers averaging 785 lbs. sold from $209.25-212.50, averaging $209.82.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,200 head on Monday. Compared to a week earlier, at the mid-session, feeder steers and steer calves sold steady to $2 higher. Feeder heifers sold steady on a light demand. Heifer calves sold $6-8 higher. Benchmark steers averaging 775 lbs. sold from $193-218.50, averaging $204.31.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,663 head on Monday. Compared to the prior sale, feeder steers sold steady to $2 higher, except 750-850 lbs. Sold $1-5 lower. Feeder heifers sold steady to $3 higher. Benchmark steers averaging 786 lbs. sold from $205-218.50, averaging $214.91. — Anna Miller, WLJ managing editor
