Last week was more than a bit of a disappointment. After a week of disappointed expectations, last week failed to deliver on its own, more conservative expectations.
The cash fed cattle trade kicked in early in the week, with over 23,000 head of negotiated cash fed cattle confirmed sold for the week by the end of Wednesday. By Thursday, that volume had grown to almost 81,000 head. Prices however were a mixed steady with the prior week with live cattle trading $123-127 (avg. $124.57) and dressed cattle selling for $198-199.50 (avg. $198.76).
The near-term futures were also a disappointment, especially on Thursday when all contracts saw triple-digit losses. The week’s net losses were around $2 in live contracts and $3 for feeders. Settlements on Thursday afternoon were as follows: February live, $124.68; April live, $124.18; January feeders, $142.78; and March feeders, $140.53.
Cash feeder cattle markets were also mixed. Medium and large #1 class steers weighing 700-800 lbs. were still averaging in the $140s, but auctions noted a lot more variety in terms of week-to-week price changes.
Colorado: The Winter Livestock auction of La Junta sold 4,689 head of feeder cattle last week, down about 2,500 head compared to the prior week. Still, prices were mostly higher. Light steer calves were up $5-8 with some instances of up $10-15. Steers over 600 lbs. were called steady to up $2. Heifers were steady to up $3 across all weights/ages. Trade was called good on good demand. Three lots of benchmark steers sold between $136-150 with higher prices going for larger lots.
Missouri: The number of feeder cattle offerings was slightly higher last week at the Joplin Regional Stockyards compared to the week before. Prices on light feeders were steady to up $4, while heavier feeders were steady to down $4 with preference for heifers. Demand was called moderate to good. Two large lots of #1, 7-weight yearling steers sold at $138-152.85.
Nebraska: The Ogallala Livestock Auction sold 5,215 head of feeders. Steers were called up $1-4 except for 7-weight steers, which were down $3. Heifers were called steady to $5 lower, except for 5-weights, which were up $6. Demand was called good. Two lots of benchmark yearling steers sold for $142-163.
Oklahoma: The National Stockyards continued to outdo itself in terms of number of offered feeder cattle for sale last week with 12,638 head. Yearling steers were called steady to down $4 while calves were steady to $5 higher. Yearling heifers were called mostly steady to down $2 with the exception of 6-weights, while calves were steady. Demand was called moderate to good on the plain-to-attractive offering. The benchmark steer offering sold between $133.50-154.50 with fleshy yearlings setting the base of the range.
South Dakota: The Hub City Livestock Auction sold 4,560 head of feeders last week, up from the week before. Steer calves were mixed up and down $2 favoring lighter calves. Heifer calves were steady where comparable. Yearling steers were mostly steady with instances of $1-3 lower. Yearling heifers were down $2-4. Demand was described as good to very good. Two very large lots of benchmark yearling steers sold between $140.50-156.
Wyoming: The Torrington Livestock Auction sold a fairly steady feeder offering last week with 5,576 head. Steers traded unevenly steady except for 7-weights which were down $3-5. Heifers were steady to down $3 on light calves, and $2 higher on calves over 600 lbs. Most of the offering consisted of long-weaned calves with a full vaccination program behind them. Number 1, 7-weight yearling steers sold between $141.50-157.50.
To Cassie Fish of the Beef Report, all of this was mostly irrelevant, however.
“CME cattle futures may be in a boring, narrow trading range. Cash cattle prices are just above a year ago. Boxed beef prices are just under a year ago. None are worth an eyebrow raise,” she summarized on Wednesday.
“But cattle slaughter levels since the week of New Year’s 2020 have been huge compared to a year ago. If the industry slaughters 630k head this week (the estimate is 627k to 635k) then the kill would exceed the same period a year ago by a whopping 51K head. That’s a bunch.” — Kerry Halladay, WLJ editor
