Live cattle futures broke out of a sideways pattern to hit new contract highs, driven by rising negotiated fed cattle prices and renewed bullish momentum. Feeder cattle contracts rallied in tandem, as traders reacted swiftly to the strength in the fed cash cattle market and underlying fundamental support.
Live cattle futures climbed to new contract highs, with the June contract up over $7 to $222.90 and the August contract up $6.75 to $216.82.
Cash trade was higher, with 12,500 head sold. Live steers sold for $227-235, and dressed steers sold for $375.
“Texas and Kansas traded over 10k head between them as of this morning, with prices averaging just over $227, just shy of $5/cwt higher than a week ago,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Packers are back in the South bidding $230—$8 higher than last week’s average, and some have traded while others are passing. Cash is nothing short of a runaway. The North, whenever it trades, will be dollars higher. Is this a blow-off in the cash? Impossible to say as it depends entirely on the decision-making by the packing industry.”
Slaughter through Thursday is projected to be 477,000 head. Total slaughter for the week earlier is estimated to be 477,000 head, 93,000 below the prior week. Actual slaughter for the week ending May 24 was 576,278 head. The average steer dressed weight was 944 lbs., 6 lbs. above the prior week.
Boxed beef prices were slightly higher, with the Choice cutout up 76 cents to $366.85 and the Select cutout up almost $3 to $356.61.
Feeder cattle
Feeder cattle also climbed to new highs, with the August contract up over $9 to $309.15 and the September contract up $9.45 to $308.30.
The CME Feeder Cattle Index was up over $7 to $304.86.
Corn futures traded mixed, with the July contract down 20 cents to $4.39 and the September contract up 4 cents to $4.31.
Kansas: Winter Livestock in Dodge City sold 1,684 head on Wednesday. Compared to the last auction two weeks ago, feeder steers over 550 lbs. sold $10-12 higher. Heifers over 550-900 lbs. sold $10-12 higher, and over 900 lbs. sold $20 higher. There were not enough steers and heifers under 550 lbs. for an accurate market test, but a stronger undertone was noted. Benchmark steers averaging 763 lbs. sold for $310-310.50, averaging $310.35.
Missouri: Joplin Regional Stockyards in Carthage sold 12,000 head on Monday. Compared to the sale held two weeks earlier, feeder steers under 600 lbs. sold $5-25 lower and heavier weights sold steady to $7 higher. Feeder heifers under 750 lbs. sold $5-10 lower, and heavier weights sold steady to $4 higher. Benchmark steers averaging 779 lbs. sold from $295-321, averaging $307.33.
Nebraska: Huss Livestock in Kearney sold 2,077 head on Wednesday. Compared to the last auction two weeks ago, steers and heifers sold steady to $15 higher. Benchmark steers averaging 766 lbs. sold for $323.25-333, averaging $331.67.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,500 head on Monday. Compared to the sale held two weeks earlier, feeder steers sold $7-12 higher and steer calves sold $5-10 higher. Feeder heifers and heifer calves sold steady to $4 higher. Benchmark steers averaging 787 lbs. sold from $303-308, averaging $304.62. — Charles Wallace, WLJ contributing editor
