The cattle markets started the week off on a higher note, with all aspects of the market trending higher. However, some volatility was found mid-week, when prices plummeted due to the rising cost of corn after a bullish USDA corn report.
Live cattle started the week out higher, but lost most of their momentum, trading at about the same price as the Friday before. The April contract closed Thursday at $120.02 and the June contract at $122.55.
Cash trade trended higher all week, with live steers selling in the $115-119.50 range. Dressed steers sold in the $185-188 range. It’s a relief to see prices finally break above the $114 mark and keep climbing higher. Cash trade for the week ending March 28 totaled 99,682 head. Live steers averaged $115.61 while dressed steers averaged $184.89.
The Fed Cattle Exchange listed 4,593 head at their weekly sale Wednesday, of which 2,038 actually sold. High bids ranged from $115.50-118. Kansas listed 110 total head, of which 36 sold; Nebraska listed 3,032 head, of which 1,725 sold; and Texas/Oklahoma/New Mexico listed 1,451 head, of which 277 head sold.
Slaughter through Thursday totaled 471,000 head, compared to 475,000 head the same time a week prior. Slaughter for the week ending March 26 is projected at 646,000 head. USDA reported actual slaughter numbers for the week ending March 20, which totaled 628,684 head.
While ham is typically the Easter meat of choice, beef climbed higher in the ranks this year due to low ham stocks and tighter hog supplies.
“Hams are surfacing in this year’s ads of course, but beef is getting top billing with large photographs and aggressive pricing for prime rib,” commented analyst Cassie Fish in The Beef. “This is occurring just as the industry overall prepares for grilling season and the peak beef demand typically experienced in May and June every year.”
As of Thursday, the Choice cutout was sitting at $249.47 and the Select cutout was at $244.70, up over $10 respectively from the week prior.
The Sterling Beef Profit Tracker recorded growing margins for both feeders and packers. As of March 26, feeders were reported as making $66 per head, as compared to a week earlier, when they were in the red, -$1.13. Packers were making $370.23 per head, compared to the week prior at $320.36. The cow-calf producer is estimated at making $124.50 per head for 2021, while feeders are recording $1.19 for the year and packers $303.50.
Feeder cattle
USDA released in its latest Prospective Plantings report Wednesday that farmers will plant lower corn acreage than the trade expected, causing the price of corn to shoot up 25 cents. In response, DTN Livestock Analyst ShayLe Stewart remarked: “Today, I’m pretty sure Johnny Cash is looking down from Heaven and is saying, ‘Yeah, that right there is a ring of fire boys,’ and then breaks out in song singing, ‘Feeder cattle fell down into a deep ring of fire; corn shot higher and the cost of gains keep a rollin’; and it burns, burns, burns—the ring of fire, the ring of fire.’”
Feeders were unable to recover from their stumble Thursday, but were able to hold steady with the April contract at $143.87 and the May contract at $149.22—about the same price as the Friday before. The May corn contract closed the day at $5.59. CME reported its latest Feeder Cattle Index Thursday morning at $140.35, up several dollars from the week prior.
“Elevated feed prices have been a known feature of the cattle feeding business in 2021 for several months already, so perhaps Wednesday’s boost to corn prices wasn’t such a surprise,” remarked Elaine Kub, DTN contributing analyst.
Colorado: Winter Livestock in La Junta sold 1,029 head Tuesday. Compared to the prior sale, there was no available trend due to lack of receipts from the past two sales. However, a higher undertone was noted. A group of steers averaging 623 lbs. sold for $133.
Iowa: Russell Livestock in Russell sold 2,947 head Monday. Compared to the last sale two weeks prior, steer calves 450-600 lbs. were steady to mostly $6 higher; 600-850 lbs. were $8-12 higher. Heifer calves 450-650 lbs. sold $8-12 higher; 650-850 lbs. were mostly $4-7 higher. Benchmark steers averaging 777 lbs. sold between $143.50-151.75.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head Monday. Compared to the prior sale, feeder steers and heifers sold $3-7 higher. Benchmark steers averaging 785 lbs. sold between $135.50-141.
New Mexico: Roswell Livestock Auction sold 904 head Tuesday. Compared to the prior sale, 400-600-lb. heifers and steers sold mostly $4 higher. Feeders over 600 lbs. sold steady to $1 higher. A small group of steers averaging 555 lbs. sold for $168.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,500 head Monday. Compared to the last sale, feeder steers sold $2-4 higher; stocker steers sold up to $10 higher; steer calves sold $3-7 higher. Feeder heifers sold steady to $3 higher; heifer calves over 500 lbs. sold steady; heifer calves under 500 lbs. sold $4-10 higher. Benchmark steers averaging 772 lbs. sold between $132-144.25.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,300 head Monday. Compared to the week prior, feeder steers and heifers sold steady to $3 higher, with instances of $7 higher on 650-700-lb. heifers. Benchmark steers averaging 779 lbs. sold between $135.25-147.
Wyoming: Torrington Livestock in Torrington sold 3,559 head Wednesday. Compared to the prior week, steer and heifer calves traded mostly steady. Benchmark steers averaging 772 lbs. sold between $140-150.75. — Anna Miller, WLJ managing editor
