While the cattle market built some strength over the week from stronger cash trade a week earlier, futures traded steady to lower on the board.
Live cattle futures traded mixed over the week, with the April contract up about $3 to $249 and the June contract down less than a dollar to $245.92.
Cash trade through Thursday totaled about 5,000 head. Live steers sold from $245-246, and no market trend was noted for dressed steers.
Cash trade for the week ending April 5 totaled 80,703 head. Live steers averaged $245, and dressed steers averaged $384.48.
“Packers ended last week willing to take on more inventory at even higher prices,” the Cattle Report wrote on Thursday. “In the coming week, cattle owners will oblige by asking even higher prices. (Could) this be the trajectory leading into the summer?”
Slaughter through Thursday totaled about 425,000 head, compared to 429,000 head a week earlier. Total slaughter for a week earlier is estimated at 533,000 head. Actual slaughter for the week ending Mar. 28 was 524,392 head. The average steer dressed weight was 983 lbs., down 1 lb. from the prior week.
Workers at the JBS beef plant in Greeley, CO, returned back to work from their unfair labor practices strike on April 7 without reaching a deal, although union leaders said negotiations were expected to take place on April 9 and 10.
“Workers remain united and will continue to fight until JBS fully ends its unfair labor practices and gives workers a contract offer that protects them, shows workers the respect they deserve, and pays them a livable wage,” said United Food and Commercial Workers Local 7 President Kim Cordova.
Boxed beef prices traded lower over the week, losing about $8 on the Choice cutout to $381.09 and $6 on the Select cutout to $381.57.
“With Mother’s Day less than five weeks away, the seasonal increase in beef demand is near and getting nearer, while April beef demand almost always proves to be fickle,” wrote Cassie Fish, market analyst, in The Beef on Tuesday. “But demand for Choice will reliably increase seasonally in May and June. It remains to be seen if escalating fuel prices cut into beef grocery purchases in the coming months.”
Feeder cattle
Feeder cattle futures traded sideways, closing about 40 cents higher on the April contract to $372.52 and 20 cents higher on the May contract to $370.42.
“Luckily, although the market has yet to see what’s going to develop in this week’s fed cash cattle market, feeder cattle demand has been excellent in the countryside,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
The CME Feeder Cattle Index lost $2.27 to close at $364.55.
Corn futures traded lower another week, losing about 8 cents on the May contract to $4.44 and losing 8 cents on the July contract to $4.55.
Missouri: Joplin Regional Stockyards in Carthage sold 7,500 head on Monday. Compared to a week earlier, feeder steers sold $5-20 higher and feeder heifers sold steady. Benchmark steers averaging 781 lbs. sold from $368-396, averaging $386.46.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 2,733 head on Monday. Compared to the previous sale, all classes were lightly tested following the Easter holiday. Feeder steers and heifers sold steady to $4 higher. Steer calves sold mostly steady, and heifer calves sold $2-5 higher. Benchmark steers averaging 782 lbs. sold from $364-386, averaging $372.47.
South Dakota: Sioux Falls Regional in Worthing sold 2,609 head on Monday. Compared to a week earlier, feeder steers sold mostly $10 higher, except 850-1,000 lbs. sold steady. Feeder heifers sold steady to $5 higher, except 700-750 lbs. and 800-850 lbs. sold $10 higher. Benchmark steers averaging 763 lbs. sold from $390-393, averaging $391.22.
Texas: Lonestar Stockyards in Wildorado sold 937 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $10-20 higher, except for 900 lbs., which were steady. Steer and heifer calves were sharply higher on a light test. Benchmark steers averaging 709 lbs. sold between $400-402, averaging $401.16. — Anna Miller Fortozo, WLJ managing editor
