The cattle market faced another week of pressure, with packers scaling back on inventory and one less trading day due to the Presidents Day holiday. Limited cash interest and shrinking slaughter numbers helped send numbers lower on the board.
Live cattle futures continue to drift lower. The February contract lost about $2 to close at $197.62, and the April contract lost about $3 to close at $193.80.
“Key fundamental underlying values for futures continue to decline this week—boxed beef prices and negotiated fed cattle prices,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Cash trade for the week was very limited, coming in at about 10,000 head by Thursday afternoon. Live steers traded from $199-200, and dressed steers sold for $315.
“Packers are treading carefully, desperately needing to cheapen up cattle costs as their losses run between $100 to $200 per head, depending on each plant’s costs,” Fish said.
Cash trade for the week ending Feb. 16 totaled 52,215 head. Live steers averaged $203.09, and dressed steers averaged $320.53.
The national weekly direct beef type price distribution for the week of Feb. 10-17 was the following on a live basis:
• Negotiated purchases: $203.25.
• Formula net purchases: $210.41.
• Forward contract net purchases: $195.96.
• Negotiated grid net purchases: $212.11.
On a dressed basis:
• Negotiated purchases: $320.43.
• Formula net purchases: $331.80.
• Forward contract net purchases: $303.33.
• Negotiated grid net purchases: $331.22.
Slaughter through Thursday totaled about 447,000 head compared to 454,000 head a week earlier. Total slaughter for a week earlier is estimated at 561,000 head.
“This is one of the smallest full week slaughter volumes in several years,” the Cattle Report said on Thursday. “Last year’s slaughter rates were impaired by winter storms and this year’s reduction by lost demand for beef.”
Actual slaughter for the week ending Feb. 8 was 582,606 head. The average steer dressed weight was 951 lbs., 1 lb. below a week earlier.
Boxed beef prices were several dollars lower over the week. The Choice cutout lost about $5 to close at $312.63, and the Select cutout lost about $6 to close at $303.18.
“Some key major primals have made a new low for 2025 this week, including the rib, chuck, flank and brisket,” Fish said. “(Thursday) morning’s Choice quote was another new low for 2025, $312.09/cwt, down $1.80.”
Feeder cattle
Feeder cattle futures were steady to lower over the week. The March contract lost about a dollar to close at $266.82, and the April contract lost a little over a dollar to close at $266.37.
“Upon seeing the live cattle complex trade lower yet again, technical uncertainty starts to again take root in the feeder cattle complex,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments. “But I think it’s important to remember that although feeder cattle prices have softened slightly compared to recent weeks (partly because of the decline in the futures complex, and partly because of weather challenges), the CME Feeder Cattle Index is still extremely high.”
She added that this proves demand is still strong despite weakness in futures.
The CME Feeder Cattle Index gained about $3 to close at $278.51.
Corn futures continue to trade mostly sideways. The March contract gained 5 cents to close at $4.98, and the May contract gained 6 cents to close at $5.12.
Iowa: Russell Livestock in Russell sold 3,884 head on Monday. Compared to the previous auction, steers mostly sold steady to $17 lower. Heifers sold unevenly, 550-700 lbs. were $7-16 lower, while others were $13-15 higher. Benchmark steers averaging 724 lbs. sold between $285-309, averaging $300.54.
Missouri: Joplin Regional Stockyards in Carthage sold 2,970 head on Monday. Compared to a week earlier, feeder steers sold unevenly steady from $8 higher to $15 lower. Feeder heifers sold steady to $10 lower. The market was uneven as heavy snow and below-zero temperatures were on the way on sale day. Benchmark steers averaging 773 lbs. sold from $263-275, averaging $269.56.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 2,800 head on Monday. Compared to a week earlier, all classes of feeder cattle and calves were lightly tested but a steady-to-firm undertone was noted. Demand was good on limited receipts due to bad weather. Benchmark steers averaging 720 lbs. sold from $278-288, averaging $282.68.
South Dakota: Sioux Falls Regional Livestock sold 3,693 head on Monday. Compared to the previous sale, feeder steers and heifers sold mostly steady. There was very good demand for the large offering of feeder cattle, with several very long strings of front-end type, home-raised steers and heifers offered in load lots and multiple load lots, along with numerous part loads and packages. Benchmark steers averaging 796 lbs. sold from $271-285, averaging $283.54. — Anna Miller, WLJ managing editor
