Strong cash trade set the tone for the cattle market over the week, driving cattle futures higher. Gains in boxed beef prices and consumer demand continue to support prices.
Live cattle futures saw gains over the week, gaining about $10 on the April contract to $256.87 and about $12 on the June contract to $255.25.
Cash trade through Thursday totaled about 85,000 head. Live steers sold from $255-258, and dressed steers sold for $400.
“There’s been no new developments Thursday in the fed cash cattle market and there’s a chance—outside of some light clean up trade—this week’s trade could be essentially done,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade for the week ending April 26 totaled 68,158 head. Live steers averaged $246.25, and dressed steers averaged $386.23.
Slaughter through Thursday totaled about 434,000 head, compared to 425,000 head a week earlier. Total slaughter for a week earlier is projected at 529,000 head. Actual slaughter for the week ending April 18 was 515,194 head. The average steer dressed weight was 980 lbs., down 2 lbs. from the prior week.
“The packer will carefully manage throughput over the coming weeks in order to improve their negative margins,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “It’s still early in the spring demand game and end user interest is likely to improve. Most still expect Choice boxed beef prices to advance to over $400/cwt in the coming weeks.”
Union workers at a JBS-owned plant in Denver, CO, recently voted to authorize an unfair labor practices strike, just weeks after workers at the JBS beef plant in Greeley, CO, came to a collective bargaining agreement with the company.
On April 24, workers at the Denver Processing beef and pork plant voted overwhelmingly to authorize a strike. The union, United Food and Commercial Workers Local 7, said the company has engaged in “illegal conduct at and away from the bargaining table.”
“We came to the table ready to negotiate a fair contract,” said Natalia Gonzalez, a Denver Processing worker and UFCW Local 7 member. “Instead, Denver Processing wasted our time, retaliated against our committee members, and refused to seriously engage with our proposals on safety and scheduling.”
Registration for the strike was set to begin May 2, with negotiations set for May 4.
Boxed beef prices gained several dollars over the week. The Choice cutout gained about $6 to close at $389.52, and the Select cutout also gained about $6 to close at $388.17.
“Whether the consumer is making different buying choices away from beef due to rising gas at the pump remains to be seen,” Fish said. “Beef demand has been reliable and remarkable. How long that continues is the unanswerable question today.”
Feeder cattle
Feeder cattle futures also saw gains over the week. The April contract gained about $6 to close at $372.27, and the May contract gained about $13 to close at $371.50.
The CME Feeder Cattle Index lost about a dollar to close at $372.47.
Corn futures also closed higher. The May contract gained 12 cents to close at $4.66, and the July contract gained 15 cents to close at $4.77.
“Buyers have been mixed this week in the countryside for feeder cattle as they have been selective on the type and kind of cattle they’re wanting given that prices are so high,” Stewart said.
Iowa: Russell Livestock in Russell sold 4,343 head on Monday. Compared to the last auction two weeks earlier, steers sold mostly $5-33 lower. Heifers under 550 lbs. were mostly $2-26 higher, while heifers over 550 lbs. sold $9-25 lower. Benchmark steers averaging 733 lbs. sold from $395-423.75, averaging $417.41.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers sold unevenly from $10 lower to $10 higher. Feeder heifers sold unevenly from $5 lower to $10 higher. Benchmark steers averaging 778 lbs. sold from $377-397, averaging $380.57.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head on Monday. Compared to a week earlier, feeder cattle and calves sold mostly steady. Benchmark steers averaging 782 lbs. sold from $365-384.50, averaging $375.31.
South Dakota: Sioux Falls Regional in Worthing sold 1,877 head on Monday. Compared to a week earlier, yearling steers 850 lbs. sold $4 lower and 900 lbs. sold steady. Heifers 700 lbs. sold $4 lower, and 800-850 lbs. sold $1-3 lower. A group of benchmark steers averaging 734 lbs. sold from $370-405, averaging $382.08.
Texas: Lonestar Stockyards in Wildorado sold 1,080 head on Tuesday. Compared to the last auction, feeder steers and heifers sold $2-10 higher. Benchmark steers averaging 786 lbs. sold for $374. — Anna Miller Fortozo, WLJ managing editor
