(Editor’s note: This report contains market data available as of Wednesday, May 6, due to an earlier WLJ press schedule.)
After a slight pullback late the prior week and into Monday, cattle futures closed modestly lower and backed away from nearby resistance, while early cash trade showed limited activity at prices generally steady with the previous week.
Live cattle futures closed mixed, with the June contract down 53 cents to $253.47 and the August contract 23 cents higher to $248.90.
Cash trade through Wednesday totaled about 2,000 head. Live steers sold for $255, and dressed steers sold for $400.
Cash trade for the week ending May 3 totaled 91,765 head. Live steers averaged $254.88, and dressed steers averaged $399.21.
“Though it’s early for the negotiated fed cattle trade to get underway, there was some $256 trade reported on the Fed Cattle Exchange and a $255 bid has been noted in the South,” wrote Cassie Fish, market analyst, in The Beef on Wednesday. “The USDA negotiated fed cattle trade report shows a smattering of activity of under 2k head for the week at generally steady money with last week.”
The national weekly direct beef type price distribution for the week of April 27 to May 4 was the following on a live basis:
• Negotiated purchases: $254.83.
• Formula net purchases: $250.61.
• Forward contract net purchases: $239.01.
• Negotiated grid net purchases: $250.73.
On a dressed basis:
• Negotiated purchases: $399.27.
• Formula net purchases: $392.53.
• Forward contract net purchases: $378.57.
• Negotiated grid net purchases: $388.23.
Slaughter through Wednesday was estimated at 313,000 head, down from 324,000 a week earlier. Total slaughter for a week earlier is projected at 534,000 head.
Actual slaughter for the week ending April 25 was not available by WLJ press time.
“Slaughter remains and will remain well below any other May in history, so from a supply standpoint for fed cattle subprimals, offerings are tight from a historical standpoint,” Fish wrote on Wednesday. “The industry may not see a weekly slaughter above 550k head at all this month, thanks to tight fed cattle supplies.”
Boxed beef prices were higher, with the Choice cutout 10 cents higher to $389.62 and the Select cutout $1.46 higher to $389.63. The Choice/Select spread is negative 10 cents.
Feeder cattle
Feeder cattle futures were lower. The May contract lost 25 cents to $372.40 and the August contract was down 47 cents to $373.05.
The CME Feeder Cattle Index was $5.53 higher to $375.33.
Corn futures closed lower, with the May contract down 12 cents to $4.64 and the June contract down 6 cents to $4.74.
Missouri: Joplin Regional Stockyards in Carthage sold 6,500 head on Monday. Compared to a week earlier, at the mid-session, feeder steers sold steady to $10 higher. Feeder heifers sold steady to $12 higher. Benchmark steers averaging 763 lbs. sold from $377-403, averaging $385.76.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to the last sale, at the mid-session, feeder steers sold steady to $4 higher. Feeder heifers were not as active and sold steady to $2 lower. Benchmark steers averaging 766 lbs. sold from $381-399, averaging $388.99.
South Dakota: Sioux Falls Regional in Worthing sold 1,893 head on Monday. Compared to a week earlier, feeder steers and heifers sold mostly steady, except steers 950-1,000 lbs. sold up to $6 higher and heifers 900-950 lbs. sold $8-10 higher. A group of benchmark steers averaging 778 lbs. sold for $385.
Texas: Giddings Livestock in Giddings sold 843 head on Monday. Compared to the last auction, feeder steers were steady to $4 lower. Feeder heifers sold $2-6 lower. A group of steers averaging 613 lbs. sold from $400-435, averaging $412.74. — Charles Wallace, WLJ contributing editor
