Futures surged higher over the week, encouraged by strong cash markets and renewed boxed beef demand.
Live cattle futures found solid gains over the week, up about $5 to $214.25 on the June contract and up about $6 to $210 on the August contract.
“The live cattle complex is trading slightly higher upon recognizing the light movement in the North yesterday afternoon and higher for fed cash cattle prices,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments. “It’s also helpful that boxed beef prices have seemed to find another wind of support as boxes have seen better demand this week than they have in recent weeks.”
Cash trade for the week through Thursday totaled about 60,000 head. Live steers sold from $218-228, and dressed steers sold from $352-360.
Cash trade for the week ending May 4 totaled 99,262 head. Live steers averaged $220.78, and dressed steers averaged $349.49.
Slaughter through Thursday totaled about 469,000 head, compared to 465,000 head a week earlier. Total slaughter for a week earlier is projected at 559,000 head. Actual slaughter for the week ending April 26 was 555,260 head. The average steer dressed weight was 946 lbs., the same as a week earlier.
“Packers appear to be topping off last week’s big buy even while keeping this week’s slaughter for the first full week in May, sub-570k head, which would rival 2015’s 568k head for this week,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Boxed beef prices continue to gain, up nearly $5 to $347.89 on the Choice cutout and up nearly $9 to $333.20 on the Select cutout.
Feeder cattle
Feeder cattle futures were also several dollars higher, up about $4 to $297.47 on the May contract and up about $7 to $301.25 on the August contract.
“With the live cattle contracts trading higher, boxed beef prices seeing better demand, the fed cash cattle market trading higher, and prices still extremely high in the countryside for feeder cattle, the market honestly has all the support it could wish for,” Stewart said.
The CME Feeder Cattle Index lost over $2, closing at $293.41.
Corn futures were lower, down about 25 cents to $4.39 on the May contract and down about 25 cents to $4.47 on the July contract. Last week’s market report incorrectly reported the May corn contract as $6.64, instead of $4.64.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to the previous sale, feeder steers and heifers sold from $5 lower to $5 higher. Benchmark steers averaging 769 lbs. sold from $293-307, averaging $299.47.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,200 head on Monday. Compared to a week earlier, feeder steers over 850 lbs. sold $2-7 higher and under 850 lbs. sold $5-10 higher. Feeder heifers sold steady to $5 higher. Steer calves sold $6-11 higher, and heifer calves sold $4-5 higher. Benchmark steers averaging 724 lbs. sold from $307-326, averaging $315.68. — Anna Miller, WLJ managing editor
