Uncertainty surrounding an impending labor strike at a major beef plant and rising geopolitical tensions weighed on cattle markets over the week.
Live cattle futures traded lower. The April contract lost about $7 to close at $231.25, and the June contract lost about $6 to close at $229.37.
Cash trade through Thursday totaled about 35,000 head. Live steers sold from $233-236, and dressed steers sold from $372-372.50.
Cash trade for the week ending March 8 totaled 75,707 head. Live steers averaged $239.94, and dressed steers averaged $379.89.
“Yesterday’s cash trade was fairly active at lower money, and that, coupled with continued higher boxed beef prices have pushed packer margins back into the black for next week,” said Cassie Fish, market analyst, in The Beef on Thursday. “This has led to expectations of improved throughput going forward, despite the fact that a couple of plants are doing spring cleaning next week and another has on-going labor issues. Throughput has been running at historic lows.”
The national weekly direct beef type price distribution for the week of March 2-9 was the following on a live basis:
• Negotiated purchases: $240.01.
• Formula net purchases: $249.03.
• Forward contract net purchases: $235.81.
• Negotiated grid net purchases: $250.70.
On a dressed basis:
• Negotiated purchases: $379.91.
• Formula net purchases: $391.71.
• Forward contract net purchases: $369.22.
• Negotiated grid net purchases: $384.35.
Slaughter through Thursday totaled about 425,000 head, compared to 433,000 head a week earlier. Total slaughter for a week earlier is projected at 521,000 head. Actual slaughter for the week ending Feb. 28 was 528,642 head. The average steer dressed weight was 981 lbs., down 2 lbs. from the prior week.
“The packers are deploying the only weapon they have to restore margins—sharply downsize the slaughter,” the Cattle Report said on Thursday. “The sharp slaughter decline for three weeks, and the accompanying rise in box prices, have combined with lower fed prices to sharply narrow the negative margins at the beef plants.”
Colorado labor union UCFW Local 7 planned for about 3,800 union workers at the JBS processing plant in Greeley, CO, to begin an unfair labor practice strike on March 16 at 5:30 a.m. The plant has the capacity to process about 5,000-6,000 head per day, but JBS planned to maintain supply by shifting production to facilities with extra capacity available.
“This causes great anxiousness for the cattle complex as the market is already seeing minimal throughput from packers as they try to manage their margins to the best of their ability,” wrote ShayLe Stewart, DTN livestock analyst, in her Monday midday comments.
Boxed beef prices continue to see gains. The Choice cutout gained about $11 to close at $398.34, and the Select cutout also gained about $11 to close at $392.14.
“Boxed beef values have advanced about $11/cwt in the past week to the highest level since September 2025 and the highest for any March in history,” Fish said. “Fresh beef 90s made a new all-time daily high yesterday at $437.98 at a time seasonally when demand for grinding material does nothing but increase.”
Increased throughput could add some stability to the cash market, Fish said. “It would also mean more product availability for the end user who has been struggling with limited offerings for several weeks. So beef demand will be tested.”
Feeder cattle
Feeder cattle futures also plummeted lower over the week. The March contract lost about $14 to close at $348.22, and the April contract lost about $16 to close at $343.
“The onset of weaker market fundamentals in the cash sector is why the feeder cattle complex is trading significantly lower and is currently even pressuring the market’s 100-day moving average in the spot April contract,” Stewart said on Wednesday.
The CME Feeder Cattle Index lost about $4 to close at $364.80.
Corn futures were slightly higher, up 7 cents on the March contract to $4.48 and up 9 cents on the May contract to $4.62.
Colorado: Winter Livestock in La Junta sold 7,166 head on Tuesday. Compared to the last auction, feeder steers sold mostly $1-3 higher, with instances of sharply higher across all weight classes. Feeder heifers sold sharply higher across all weight classes. Benchmark steers averaging 711 lbs. sold between $380-390, averaging $387.81.
Missouri: Joplin Regional Stockyards in Carthage sold 6,341 head on Monday. Compared to a week earlier, feeder steers sold $2-8 lower, with the exception of four-weight steers, which sold $10-15 higher. Feeder heifers sold steady to $8 higher. Benchmark steers averaging 781 lbs. sold from $360-365, averaging $362.58.
New Mexico: Roswell Livestock in Roswell sold 1,009 head on Monday. Compared to the last auction, feeder steers and heifers sold $5-20 lower, except for 700-750 lbs. steers, which were steady to $2 higher, and 450-500 lbs. heifer calves, which traded steady. Benchmark steers averaging 724 lbs. sold between $347-367 and averaged $365.41.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,303 head on Monday. Compared to a week earlier, feeder steers and heifers sold $10-20 lower. Steer and heifer calves were lightly tested. Benchmark steers averaging 775 lbs. sold from $340-357, averaging $349.99. — Anna Miller Fortozo, WLJ managing editor
