The luck of the Irish was not to be had during St. Patrick’s week as markets saw red. Cattle futures were in correction mode due to outside economic pressures of uncertainty. Cash trade was $1 lower than the prior week’s weighted averages for live and dressed cattle.
Cattle on Feed pre-report estimates were released ahead of the upcoming Cattle on Feed report due to be released by USDA on March 17. The analysts expected cattle on feed numbers as of March 1 to dip to 95.6% of a year ago of 11.6 million head. Marketings estimates averaged 95.8% of a year ago. Placements were estimated to range from 90-96.9% of a year ago.
Live cattle futures were lower, with the April contract down $2.45 to $162.35 and the June contract down $2.80 to $156.87.
“Technical and opportunistic selling is active as the June, August and October live cattle contracts took out their 100-day moving average, though not their January swing low as of yet. Futures are oversold, but fear has the potential to pound markets into the dust,” wrote Cassie Fish, market analyst for The Beef, on Wednesday.
Cash trade was active early in the week, with 66,400 head sold. Live steers sold between $163-166, averaging $164.06. Dressed steers sold between $260-264.60, averaging $263.86.
Cash trade for the week ending March 12 totaled 79,854 head. Live steers averaged $165.32, and dressed steers averaged $265.42.
“Fear is an immediate and visceral reaction and cattle feeders have sold cattle today $1 then $2 cheaper than last week,” wrote Fish on Wednesday. “Cash would have likely traded steady this week were it not for outside markets.”
The national weekly direct beef type price distribution for the week of March 6-13 was the following on a live basis:
• Negotiated purchases: $165.28.
• Formula net purchases: $167.31.
• Forward contract net purchases: $165.33.
• Negotiated grid net purchases: $168.86.
On a dressed basis:
• Negotiated purchases: $265.56.
• Formula net purchases: $266.41.
• Forward contract net purchases: $256.58.
• Negotiated grid net purchases: $263.23.
Slaughter through Thursday was 501,000 head. Slaughter for the week prior was estimated to be 634,000 head. Actual slaughter for the week ending March 4 was 625,532 head. The average dressed steer weight was 899 lbs., down 3 lbs. from the week prior.
Boxed beef prices were lower, with the Choice cutout down 65 cents to $283.95 and the Select cutout down $4.29 to $271.76.
The Daily Livestock Report wrote total U.S. beef imports in January were the third highest on record at 364.7 million pounds, up 3.6%, or 12.7 million lbs., from a year earlier. Of the total U.S. beef imports in January, Brazil accounted for 28.7%, followed by Canada at 23.2%, Mexico at 15.4%, Australia at 11.6% and New Zealand at 10.8%.
Feeder cattle
Feeder cattle futures were also lower, with the March contract down $3.57 to $189.50 and the April contract down $4 to $195.15. May futures continue to hover over $200. The CME Feeder Cattle Index was down a penny to $188.71.
Corn futures were higher after two large sales of old-crop corn to China. The March contract was up 14 cents to $6.32, and the May contract was up 5 cents to $6.16.
Kansas: Winter Livestock in Dodge City sold 3,628 head Wednesday. Compared to the previous auction, feeder steers 800-950 lbs. sold steady to $2 lower. Steers 600-800 lbs. sold $3-5 higher. Steer calves 400-600 lbs. sold $6-10 higher, with instances of $20 higher. Feeder heifers 700-950 lbs. sold steady to $2 lower. Heifers 400-700 lbs. sold $5-10 higher, with instances of $15 higher. Benchmark steers averaging 744 lbs. sold between $182-188.35, averaging $187.11.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to a week earlier, feeder steers traded steady to $2 higher, with feeder heifers steady. Benchmark steers averaging 719 lbs. sold between $193-209.50, averaging $200.46.
Nebraska: Huss Livestock in Kearney sold 4,305 head Wednesday. Compared to the last auction, steers 550-750 lbs. sold $3-8 higher, and steers over 750 lbs. sold steady to $3 lower. Heifers 500-700 lbs. sold steady to $3 higher, and heifers over 700 lbs. sold $3-4 lower. Benchmark steers averaging 782 lbs. sold between $187.50-195.25 and averaged $188.64.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,975 head on Monday. Compared to a week earlier, feeder cattle and calves sold steady, but steers over 800 lbs. and heifers over 700 lbs. were not well tested. Steer and heifer calves sold steady. Benchmark steers averaging 772 lbs. sold from $180-191, averaging $187.54.
South Dakota: Hub City Livestock in Aberdeen sold 7,691 head Wednesday. Compared to the previous auction, steers 500-750 lbs. sold $3-7 higher, and 751-950 lbs. traded $3-6 lower. Heifers 550-600 lbs. and 651-700 lbs. sold steady to $4 higher, 601-650 lbs. and 700-850 lbs. traded steady, except 750-800 lbs. were not well compared. Benchmark steers averaging 767 lbs. sold between $187-204.75, averaging $198.77. — Charles Wallace, WLJ editor
