The cattle futures finally found their stride and climbed more than a couple dollars higher over the week. While cash trade was slow to get started, prices skyrocketed later in the week.
Live cattle futures were several dollars higher, with the April contract up over $5 to $167.55 and the June contract also up over $5 to $161.
Cash trade through Thursday totaled about 53,000 head. Live steers sold from $165-172, averaging $167.87, and dressed steers sold from $266-273, averaging $270.49.
“This week’s trade is blowing the roof off as packers scramble to cover slaughter needs amidst tight market-ready fed cattle supplies,” wrote Cassie Fish, market analyst, in The Beef, on Thursday afternoon. “Some think this is the seasonal high. Others believe the cash market will top later than this given the weather-delayed marketings in the north.”
She added, “Suffice it to say, there is a very good chance Q2 average fed cattle prices will beat Q1, and this is the last week in Q1.”
Cash trade for the week ending March 26 totaled 84,955 head. Live steers averaged $164.54, and dressed steers averaged $265.06.
The national weekly direct beef type price distribution for the week of March 20-27 was the following on a live basis, negotiated purchases: $164.54, formula net purchases: $167.62, forward contract net purchases: $163.44, and negotiated grid net purchases: $168.07. On a dressed basis, negotiated purchases: $265.07, formula net purchases: $266.77, forward contract net purchases: $257.57, negotiated grid net purchases: $268.22.
Slaughter through Thursday was projected at 505,000 head, a few thousand head more than a week earlier. Estimated slaughter for the week ending March 23 is 626,000 head. Actual slaughter for the week ending March 18 was 628,384 head. The average dressed steer weight was 899 lbs., down 4 lbs. from the week prior.
Boxed beef prices were steady to lower, with the Choice cutout down just over $3.50 to $279.20 and the Select cutout down 43 cents to $2689.46. The Choice/Select spread was $10.74.
Feeder cattle
“Despite outside worries, May feeder prices have held up well and continue to show strong demand at a time when cattle numbers are down,” wrote Todd Hultman, DTN lead analyst, in his Thursday midday comments. The May contract posted at over $200, sitting at $204.25.
Feeder cattle futures were higher, with the March contract up nearly $4 to $192.40 and the April contract up nearly $5 to $199.90.
The CME Feeder Cattle Index gained over $3, closing at $192.35.
Corn futures were higher, with the May contract up 18 cents to $6.49 and the July contract up 17 cents to $6.27.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head on Monday. Compared to a week earlier, feeder steers under 475 lbs. sold steady to $4 lower, with heavier weights steady. Feeder heifers sold steady. Benchmark steers averaging 756 lbs. sold for $193.50.
Nebraska: Huss Livestock Market in Kearney sold 2,387 head Wednesday. Compared to the last auction, steers sold steady to $3 higher and heifers sold steady. Benchmark steers averaging 735 lbs. sold between $204.75-207 and averaged $205.02.
Oklahoma: Oklahoma National Stockyards sold 6,500 head on Monday. Compared to a week earlier, feeder steers sold $3-5 higher; six-weights sold $12-16 higher. Steer calves sold steady to $4 higher. Feeder heifers sold steady to $1 higher. Heifer calves sold $6-8 higher. Benchmark steers averaging 761 lbs. sold between $187-196.50, averaging $192.46. — Anna Miller, WLJ managing editor
