The markets found their momentum over the week, with cash trade soaring higher. Futures were steady to higher, closing out the week a day earlier with the market closed on Friday for Good Friday.
Live cattle futures were a couple of dollars higher, with the April contract up over $3.50 to $171.97 and the June contract up over $2 to $163.10.
“There’s something extra invigorating about a rally that’s driven by the market’s fundamentals,” wrote ShayLe Stewart, DTN livestock analyst, in her midday Thursday comments. “Traders were leery about overly advancing the live cattle market ahead of seeing what this week’s cash cattle trade was going to do, but now that prices are firmly higher in both regions, traders wasted no time advancing the contracts early Thursday morning.”
Cash trade found its momentum Wednesday afternoon, with over 70,000 head trading. Through Thursday, cash trade totaled about 92,000 head. Bids were several dollars higher, reaching as high as $178. Live steers averaged $172, and dressed steers averaged $278.
“Futures have responded today with triple-digit gains but really, futures are behaving modestly in comparison with the cash market,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “This is a realizing bull futures market. It will be led by the cash market. This bull market will be underestimated. This is not the middle nor the end of this bull, but the beginning.”
Cash trade through the week ending April 2 totaled 95,007 head. Live steers averaged $168.96, and dressed steers averaged $270.46.
“The national negotiated fed cattle trade last week occurred at a new high for the move and the highest price ever for the last week in any March, $168.96/cwt,” Fish said. “Last week’s 5-area average price was $4.33/cwt higher than the prior week, a big week-over-week jump by any historical standards. This high fell just short of the 2015 high of $169.67.”
The national weekly direct beef type price distribution for the week of March 27 to April 3 was the following on a live basis:
• Negotiated purchases: $169.01.
• Formula net purchases: $167.13.
• Forward contract net purchases: $167.05.
• Negotiated grid net purchases: $167.96.
On a dressed basis:
• Negotiated purchases: $270.87.
• Formula net purchases: $265.46.
• Forward contract net purchases: $255.88.
• Negotiated grid net purchases: $267.71.
Slaughter through Thursday totaled about 488,000 head, compared to the previous Thursday at 505,000 head. Total slaughter for a week earlier was projected at 651,000 head. Actual slaughter for the week ending March 25 was 627,844 head. The average dressed steer weight was 895 lbs., down 4 lbs. from the prior week.
Boxed beef prices were higher, with the Choice cutout over $10 higher to $289.65 and the Select cutout up a little less than $10 to $276.63.
Feeder cattle
“As we move towards springtime grazing options and opportunities, moisture will dictate the direction of prices and demand,” wrote the Cattle Report. “Summer grazing on the grasslands of the southern Plains will depend on spring rains with an area from Amarillo, TX, north to Ulysses, KS, remaining in a drought. Saying goodbye to La Niña and welcoming El Niño is on the heart and minds of many operations in this area.”
Feeder cattle futures were up slightly, with the April contract up less than a dollar to $200.62 and the May contract up about a dollar to $205.49.
The CME Feeder Cattle Index was up 87 cents to $193.22.
Corn futures were several cents lower, with the May contract down 6 cents to $6.43 and the July contract down 8 cents to $6.19.
Colorado: Winter Livestock in La Junta sold 3,486 head on Tuesday. Compared to the last auction, feeder steers under 700 lbs. sold steady to $5, and over 700 lbs. were steady to $5 higher. Feeder heifers 400-700 lbs. sold $10-15 higher, and over 700 lbs. were $2-4 higher. Benchmark steers averaging 736 lbs. sold between $201-204 and averaged $201.65.
Kansas: Winter Livestock in Dodge City sold 2,891 head Wednesday. Compared to the previous auction, feeder steers 700-900 lbs. sold $3-6 higher, and 900-1,000 lbs. sold $2-4 lower. Steer calves 400-700 lbs. sold $8-10 higher. Heifers 500-900 lbs. sold $4-7 higher. Benchmark steers averaging 791 lbs. sold between $194.75-196, averaging $195.03.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers sold $4-9 higher. Feeder heifers sold $4-7 higher. Benchmark steers averaging 712 lbs. sold from $199-215, averaging $209.90.
Nebraska: Tri-State Livestock in McCook sold 1,873 head Monday. Compared to the last auction, steers sold $10-13 higher, and heifers traded steady to $2 higher. Benchmark steers averaging 788 lbs. sold for $199.
New Mexico: Roswell Livestock in Roswell sold 1,638 head Monday. Compared to the previous auction, steer calves 350-550 lbs. sold $2-6 higher, and 550-600 lbs. sold $12 higher. Heifer calves 350-500 lbs. sold steady to $5 lower, and 500-600 lbs. sold sharply higher. Feeder steers 600-750 lbs. sold $6-7 higher, and feeder heifers sold $9-10 higher. Benchmark steers averaging 783 lbs. sold between $165-172, averaging $170.94.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,750 head on Monday. Compared to a week earlier, at the mid-session, feeder steers and heifers sold $3-6 higher, with instances of $8 higher. Steer and heifer calves sold $6-10 higher, with instances of $13 higher. Benchmark steers averaging 726 lbs. sold from $196.50-206, averaging $199.11.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 4,319 head Monday. Compared to the last auction, feeder steers sold steady to $5 higher, with instances of $29 on light cattle except for 550-600 lbs. traded $5-10 lower, and 850-950 lbs. traded steady to $2 lower. Feeder heifers sold steady to $5 higher, with instances of $20 higher on the light weights, except for 800-950 lbs. traded steady to $5 lower. Benchmark steers averaging 776 lbs. sold between $199-212, averaging $208.79. — Anna Miller, WLJ managing editor
