The markets posted modest gains over the week, with winter weather bringing a halt to some market activity.
Live cattle futures picked up a few dollars over the week. The February contract gained about $3 to close at $235.50, and the April contract gained about $3 to close at $237.27.
“It’s somewhat questionable where traders are getting the additional support from this morning, as boxed beef prices are mixed and we’ve yet to see any trade in the fed cash cattle market,” ShayLe Stewart, DTN livestock analyst, wrote in her Wednesday midday comments. “But maybe traders’ confidence lies in the fact that they believe fed cash cattle prices will trade higher later this week and that Friday’s Cattle inventory report will be bullish. I hope all those claims come to fruition.”
Cash trade through Thursday totaled less than 2,000 head. Live steers sold for $235, and dressed steers sold for $368.
Cash trade for the week ending Jan. 25 totaled 73,362 head. Live steers averaged $234.74, and dressed steers averaged $368.76.
Slaughter through Thursday totaled about 436,000 head, compared to 447,000 head a week earlier. Total slaughter for a week earlier is estimated at 535,000 head. Actual slaughter for the week ending Jan. 17 was 566,512 head. The average steer dressed weight was 984 lbs., down 1 lb. from the prior week.
“The market’s attention continues to be focused on the tension between packers and cattle feeders as packers slash production schedules this week in attempt to limit losses,” Cassie Fish, market analyst, wrote in The Beef on Thursday. “So far, all the cuts have done is provide modest support for wholesale beef prices that are in the process of completing their January seasonal rally.”
Boxed beef traded sideways over the week. The Choice cutout gained about 15 cents to close at $367.66, and the Select cutout gained about a dollar to close at $360.72.
USDA’s biannual Cattle inventory report was set to be released Friday, after WLJ press time.
“It is widely expected to show very modest beef heifer retention for the breeding herd and indicate that overall, the drawdown in numbers has begun to stabilize,” Fish said. “And though the updated cattle herd information is very welcome, it will have little if any bearing on the immediate market.”
Feeder cattle
Feeder cattle futures traded higher over the week. The January contract gained about $6 to close at $369.17, and the March contract gained about $6 to close at $365.12.
The CME Feeder Cattle Index lost about $4 to close at $363.99.
Corn futures traded higher over the week, up 6 cents on the March contract to $4.30 and up 7 cents on the May contract to $4.39.
Many sales were canceled over the week ahead of a major snow and ice storm that moved through much of the country.
Iowa: Russell Livestock in Russell sold 2,000 head on Monday. Compared to a week earlier, steers sold $4-13 higher. Heifers also sold higher, mostly $3 higher to sharply higher. Benchmark steers averaging 777 lbs. sold from $349-374.50, averaging $369.50.
Nebraska: Bassett Livestock in Bassett sold 6,475 head on Wednesday. Compared to the last auction held two weeks earlier, steer offerings 550-750 lbs. traded unevenly steady. Heifer offerings 550-600 lbs. traded $3-10 higher and 650 lbs. traded $9 lower. Benchmark steers averaging 773 lbs. sold from $375-402.50, averaging $385.21.
South Dakota: Sioux Falls Regional in Worthing sold 4,923 head on Monday. Compared to the previous auction, feeder steers sold steady to $5 higher, except 550-600 lbs. were $10-25 higher. Feeder heifers sold mostly steady, except 500-550 lbs. and 950-1,000 lbs. were $5-8 higher. Benchmark steers averaging 778 lbs. sold from $371-389, averaging $379.50.
Wyoming: Torrington Livestock in Torrington sold 3,760 head on Wednesday. Compared to a week earlier, feeder steers and heifers traded steady to $10 higher. Benchmark steers averaging 756 lbs. sold from $384-403.50, averaging $396.49. — Anna Miller Fortozo, WLJ managing editor
