The cattle market moved cautiously over the week as traders continue to weigh uncertainty from outside pressures.
Live cattle futures traded modestly higher over the week. The April contract gained about $2 to close at $238.57, and the June contract also gained about $2 to close at $235.35.
“The live cattle complex is trading mildly higher following Wednesday’s sizeable surge,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday comments. “Traders are cautiously advancing the spot April contract above its 40-day moving average, but it’s not come without some worry as traders question whether or not they’re overdoing the upward trend right now.”
She added, “If we had seen some stronger trade in the fed cash cattle market, then there likely wouldn’t be any worry amongst traders; but we’ve yet to see any cash trade develop.”
Cash trade through Thursday totaled about 1,000 head. There was no trend noted on live steers. Dressed steers sold from $375-376.
Cash trade for the week ending March 1 totaled 51,189 head. Live steers averaged $242.78, and dressed steers averaged $382.63.
The national weekly direct beef type price distribution for the week of Feb. 23 to Mar. 2 was the following on a live basis:
• Negotiated purchases: $242.86.
• Formula net purchases: $251.42.
• Forward contract net purchases: $239.45.
• Negotiated grid net purchases: $256.47.
On a dressed basis:
• Negotiated purchases: $382.60.
• Formula net purchases: $393.32.
• Forward contract net purchases: $368.09.
• Negotiated grid net purchases: $381.56.
Slaughter through Thursday totaled about 433,000 head, compared to 427,000 head a week earlier. Slaughter for a week earlier is estimated at 516,000 head. Actual slaughter for the week ending Feb. 21 was 517,132 head. The average steer dressed weight was 983 lbs., down 1 lb. from the previous week.
“The packers are deploying the only weapon they have to restore margins—sharply downsize the slaughter,” the Cattle Report wrote on Thursday. “The sharp decline for two weeks running will send a jolt through the retail trade and has already set the stage for higher box prices.”
Boxed beef prices climbed higher over the week. The Choice cutout gained $9 to close at $386.89, and the Select cutout gained about $10 to close at $380.61.
“Beef demand will now transition from a historically soft seasonal period to the spring period that has featured improved demand,” the Cattle Report said.
Feeder cattle
Feeder cattle futures traded mostly sideways over the week. The March contract gained about a dollar to close at $362.85, and the April contract gained about 40 cents to close at $359.12.
“The live cattle complex is pushing its spot April contract above the 40-day moving average, but the feeder cattle complex isn’t seeing the same level of support as traders aren’t comfortable pushing above their 40-day moving average at this time,” Stewart said.
The CME Feeder Cattle Index lost more than $5 to close at $368.93.
Corn futures traded higher over the week, up 8 cents on the March contract to $4.41 and up 10 cents on the May contract to $4.53.
Colorado: Winter Livestock in La Junta sold 1,169 head on Tuesday. Compared to the last auction, feeder steers under 700 lbs. sold unevenly steady and over 700 lbs. sold $10-11 lower. Feeder heifers sold mostly sharply lower across all weight classes. Benchmark steers averaging 713 lbs. sold between $379-380, averaging $379.25.
Iowa: Russell Livestock in Russell sold 3,611 head on Monday. Compared to the last auction, steers sold mostly $2-21 lower. Heifers sold mostly $3-20 lower. Benchmark steers averaging 715 lbs. sold between $388-412, averaging $402.17.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers under 550 lbs. sold $10-30 lower and heavier weights sold $2-8 lower. Feeder heifers under 650 lbs. sold steady to $10 lower, and heavier weights sold $5-25 lower. Benchmark steers averaging 759 lbs. sold from $360-375, averaging $371.66.
Nebraska: North Platte Stockyards in North Platte sold 2,705 head on Tuesday. Compared to the last auction, steers and heifers sold mixed. Benchmark steers averaging 777 lbs. sold between $379-386, averaging $384.53.
New Mexico: Roswell Livestock in Roswell sold 788 head on Monday. Compared to the last auction, steer calves sold steady to higher, with a few $5 lower. Feeder steers sold steady to lower. Heifer calves sold lower with no comparable sales in heifer yearling sales. Benchmark steers averaging 712 lbs. sold between $357-365, averaging $363.11.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to a week earlier, at the mid-session, feeder steers sold $2-8 lower and feeder heifers sold $4-10 lower. Steer calves sold $5-15 lower, and heifer calves sold $10-20 higher. Benchmark steers averaging 756 lbs. sold from $349-373.50, averaging $369.40.
South Dakota: Sioux Falls Regional in Worthing sold 3,322 head on Monday. Compared to a week earlier, feeder steers sold $10-15 lower, except 600-700 lbs. sold steady to $5 lower. Feeder heifers sold $10-15 lower, except 500-600 lbs. sold up to $10 higher. Benchmark steers averaging 781 lbs. sold from $355-392, averaging $367.04. — Anna Miller Fortozo, WLJ managing editor
