Cash trade was steady over the week, although it is likely fed cattle are entering their seasonal decline. Futures were red on the board for both live and feeder cattle.
Live cattle futures were lower, with the June contract down $3.63 to close at $161.57 and the August contract down $4.43 to $159.42.
Cash trade through Thursday totaled about 76,000 head. Live steers sold from $170-178, and dressed steers sold from $278-281.
“All agree the seasonal decline in fed cattle prices has begun, the only debate is how long and how far,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
“That will depend on harvest levels the next nine weeks. If Saturday slaughters are robust, then no additional currentness will be lost,” she continued. “If they are not, then the advantage of a very current front-end supply of market-ready fed cattle will be eroded.”
The national weekly direct beef type price distribution for the week of April 24 to May 1 was the following on a live basis:
• Negotiated purchases: $177.20.
• Formula net purchases: $180.99.
• Forward contract net purchases: $166.94.
• Negotiated grid net purchases: $178.97.
On a dressed basis:
• Negotiated purchases: $283.96.
• Formula net purchases: $286.37.
• Forward contract net purchases: $261.98.
• Negotiated grid net purchases: $286.96.
Cash trade for the week ending April 30 totaled 83,647 head. Live steers averaged $177.17, and dressed steers averaged $284.15.
Slaughter through Thursday is estimated at 496,000 head, on pace with a week earlier. Slaughter for a week earlier is projected at 620,000 head. Actual slaughter for the week ending April 22 was 625,370 head. The average dressed steer weight was 892 lbs., down 2 lbs. from the prior week.
Boxed beef prices were lower, with the Choice cutout down $1.55 to $309.52 and the Select cutout down $1.60 to $287.49.
“Boxed beef values are taking a breather as well, down very slightly overall from a week ago with the rib showing the most weakness and beef 50s surging over $200/cwt,” Fish said. “Packer margins will widen this week, pushing well over $100 per head.”
Feeder cattle
“The feeder cattle complex is trading lower as the market longs for support from the live cattle/cash cattle market but continues to be neglected of that need,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
“It’s not helping that outside pressures are making it nearly impossible for any of the livestock contracts to trade higher, but at this point, there’s a very slim chance of feeders closing higher as pressure remains a limiting factor for the market,” she said.
Feeder cattle futures were lower, with the May contract down $7.87 to $203.65 and the August contract down $8.42 to close at $223.15.
The CME Feeder Cattle Index lost 88 cents to close at $201.53.
Corn futures recovered some of their losses from a week earlier, with the May contract up 19 cents to $6.46 and the July contract up 8 cents to $5.89.
Iowa: Russell Livestock in Russell sold 3,651 head Monday. Compared to the last auction steer calves under 500 lbs. sold mostly higher on a light test, while steers 500-650 lbs. sold $2-5 lower. Heifer calves under 450 lbs. sold mostly lower on a light test, while heifers 450-650 lbs. were $2-9 higher. Benchmark steers averaging 733 lbs. sold between $200-209.25 and averaged $208.15.
Kansas: Winter Livestock in Dodge City sold 1,912 head on Wednesday. Compared to a week earlier, feeder steers 700-950 lbs. sold steady to $2 higher. Steers 500-700 lbs. sold $6-8 higher. Feeder heifers 700-850 lbs. sold $2-4 lower, and heifers 500-700 lbs. sold $6-8 higher. Steer and heifer calves 400-500 lbs. sold $10-12 higher, but thin-fleshed calves sold up to $20 higher. A group of thin-fleshed steers averaging 752 lbs. sold from $202-205, averaging $203.61.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers and heifers sold steady. Benchmark steers averaging 759 lbs. Sold from $207-213, averaging $209.07.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to the prior sale, feeder steers sold steady to $4 higher. Feeder heifers sold $2-4 higher, except heifer calves over 500 lbs. sold $1-4 lower. Benchmark steers averaging 775 lbs. sold from $200-206, averaging $203.88.
South Dakota: Sioux Falls Regional Cattle Auction sold 2,097 head on Monday. Compared to a week earlier, feeder steers sold $2-4 lower in a light test, with lighter weights selling significantly lower. Feeder heifers sold steady to $5 lower in a light test, except 600-650 lbs. sold $6-7 higher. Benchmark steers averaging 753 lbs. sold from $211-223.50, averaging $222.50. — Anna Miller, WLJ managing editor
