Despite the ongoing strike at a Colorado JBS plant, the cattle market found some stronger footing over the week.
Live cattle futures recovered some losses by Thursday. The April contract gained about $2 to close at $233.27, and the June contract gained also gained about $2 to close at $231.70.
“The market is making new lows for the week but is well above last week’s important low,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Cash trade through Thursday totaled less than 2,000 head. There were no market trends noted.
“Cattle feeders had begun the week with expectations of higher money after last week’s $5/cwt lower trade,” Fish said. “But packers seem to be holding their resolve and are focused on margin management after record losses earlier this quarter.”
Cash trade for the week ending March 15 totaled 43,139 head. Live steers averaged $234.99, and dressed steers averaged $372.08.
Slaughter through Thursday totaled 414,000 head, compared to 422,000 head a week earlier. Total slaughter for a week earlier is estimated at 525,000 head. Actual slaughter for the week ending Mar. 7 was 523,916 head. The average steer dressed weight was 986 lbs., up 5 lbs. from the prior week.
Slaughter for the week was anticipated to be lower as a result of the ongoing strike at the JBS Greeley, CO, processing plant, although the company was expected to shuffle cattle around to other plants with capacity.
Boxed beef traded steady to higher over the week. The Choice cutout gained about $2 to close at $400.30, and the Select cutout gained about 30 cents to close at $392.45.
USDA was set to release its latest Cattle on Feed report on March 20.
“Friday’s USDA Cattle on Feed report will confirm that the market is front end loaded,” Fish wrote on Wednesday. “Average estimates are cattle on feed at 99.2% of a year ago; placed at 99% of a year ago and marketing at 92.3% of a year ago.”
Feeder cattle
Feeder cattle futures gained back some losses. The March contract gained about $7 to close at $355.27, and the April contract gained $4.75 to close at $347.75.
The CME Feeder Cattle Index lost more than $6 to close at $358.32.
Corn futures closed higher, up 7 cents on the May contract to $4.69 and up 7 cents on the July contract to $4.80.
“Receipts at major livestock auctions are in decline from prior year making price adjustments more difficult,” the Cattle Report said on Thursday. “The combination of rising grain prices, feedlot and beef plant closures, and consumer resistance to high beef prices are negatives but a curtailed supply of animals is forcing competition in the marketplace.”
Iowa: Russell Livestock in Russell sold 1,278 head on Monday. Compared to the sale last held two weeks earlier, steers sold mostly steady to $15 higher and heifers sold mostly steady to $5 lower. Benchmark steers averaging 726 lbs. sold from $386-415, averaging $399.75.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold $5-15 higher. Benchmark steers averaging 711 lbs. sold from $380-393, averaging $390.12.
Montana: Miles City Livestock in Miles City sold 1,348 head on Tuesday. All feeder cattle were too lightly tested a week earlier to develop an accurate market trend, but higher undertones were noticed on all steers. Heifers were too lightly tested to develop a market trend, but steady-to-higher undertones were noted. Benchmark steers averaging 717 lbs. sold between $390-418, averaging $417.31.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,305 head on Monday. Compared to the previous sale, feeder steers and heifers sold $10-15 higher. Steer calves sold $10-20 higher. Heifer calves sold $5-15 higher. Benchmark steers averaging 777 lbs. sold from $355-367, averaging $360.76.
South Dakota: Sioux Falls Regional in Worthing sold 786 head on Monday. Compared to a week earlier, there were too few comparable weights of feeder steers and heifers for a good comparison. Benchmark steers averaging 710 lbs. sold for $387.
Utah: Producers Livestock in Salina sold 1,148 head on Tuesday. Compared to the previous auction, feeder cattle sold unevenly, with calves and yearlings steady. Benchmark steers averaging 783 lbs. sold between $361-365, averaging $363.22. — Anna Miller Fortozo, WLJ managing editor
