The cattle complex rebounded, climbing triple digits higher after experiencing losses for the last few weeks. Cash trade did not develop for the week, and what was sold was mostly steady money.
Live cattle futures closed higher, with the April contract up $2.10 to $181.17 and the June contract up $2.52 to $175.37.
“CME cattle futures have used this week to stage a very modest short-term correction after getting hammered in recent weeks,” Cassie Fish, market analyst, wrote in The Beef on Thursday. “Yet, there seems to be waning confidence on just how much futures can regain the $16 lost since March 14. For now, the 100-day moving average is stopping advances in the most active June LC. Only soon-to-expire April LC is trading above its 100-day.”
Cash trade was light and will likely develop at the end of the week. Through Thursday, 4,500 head were sold. Live steers sold for $183, and dressed steers sold between $292-294, steady with the prior week.
Cash trade for the week ending April 14 was 64,875 head. Live steers averaged $184, and dressed steers averaged $293.42.
The national weekly direct beef type price distribution for the week of April 8-15 was the following on a live basis:
• Negotiated purchases: $183.69.
• Formula net purchases: $188.81.
• Forward contract net purchases: $190.70.
• Negotiated grid net purchases: $189.37.
On a dressed basis:
• Negotiated purchases: $293.47.
• Formula net purchases: $297.91.
• Forward contract net purchases: $302.41.
• Negotiated grid net purchases: $302.04.
Slaughter through Thursday was 487,000 head, 5,000 head above a week earlier. The previous week’s slaughter was projected to be 603,000 head. Actual slaughter for the week ending April 6 was 614,045 head. The average steer dressed weight was 919 lbs., 4 lbs. below the prior week.
Boxed beef prices were lower, with the Choice cutout down $2.57 to $295.80 and the Select cutout down $5.88 to $289.27.
“Boxed beef prices are supposed to be gaining strength for their seasonal rally, but instead are floundering,” Fish wrote on Thursday. “This has kept packers on the sidelines as they work hard to stop red ink from growing. The smaller the May/June boxed beef cutout price rally, the less incentive packers have to seasonally ramp up production. And it is demand for cattle to supply that production that is the tell on price discovery for fed cattle. Less demand means smaller weekly purchases.”
Analysts released the pre-report estimates for the Cattle on Feed report. The consensus is that cattle on feed will be 102% for feedlots of 1,000 head or greater in April. Placements in March are estimated to be 92.1%, and marketings for March are predicted at 88.2%.
Feeder cattle
Feeder cattle futures followed live cattle futures, climbing higher. The April contract was up $3.33 to $241.60, and the May contract was up $6.03 to $242.55. The CME Feeder Cattle Index was down $1.30 to $242.35.
Corn futures were lower, with the May contract down 17 cents to $4.26 and the July contract down 9 cents to $4.36.
Kansas: Winter Livestock in Dodge City sold 1,434 head on Wednesday. Compared to the previous auction, feeder steers under 750 lbs. sold unevenly steady, with heavier weights steady to $3 higher. Feeder heifers under 650 lbs. sold $4-12 lower. A group of steers averaging 777 lbs. sold between $230.50-252, averaging $246.24.
Nebraska: Tri-State Livestock in McCook sold 1,225 head on Monday. Compared to the last auction, steers sold $8-10 lower and heifers sold mostly $9 higher. Benchmark steers averaging 715 lbs. sold for $291.
Missouri: Joplin Regional Stockyards in Carthage sold 6,151 head on Monday. Compared to the last auction, feeder steers under 625 lbs. sold $2-12 lower, with heavier weights steady to $3 higher. Feeder heifers under 550 lbs. sold $4-12 higher, with some three-weight and light four-weight heifers up to $20 higher. Benchmark steers averaging 776 lbs. sold between $235-255, averaging $239.17.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,691 head on Monday. Compared to the last auction, steers over 700 lbs. and heifers over 650 lbs. were steady. Steers under 700 lbs. and heifers under 650 lbs. sold $3-7 lower. Benchmark steers averaging 723 lbs. sold between $241-268, averaging $253.57.
Texas: Lonestar Stockyards in Wildorado sold 944 head on Tuesday. There were not enough sales for an accurate comparison. Benchmark steers averaging 780 lbs. sold between $248-254.50, averaging $254.23.
Wyoming: Torrington Livestock in Torrington sold 2,746 head on Wednesday. Compared to the previous week, feeder steers and heifers traded $3-8 higher. Benchmark steers averaging 723 lbs. sold from $279-291.50, averaging $283.40. — Charles Wallace, WLJ contributing editor
