Packers continue to pull back slaughter volumes, while boxed beef prices held relatively steady. Strong demand continues in the countryside.
Live cattle futures were higher, up about $4 apiece on the April and June contracts, closing at $213.50 and $208, respectively.
Cash trade through Thursday totaled about 5,000 head. While concrete market trends weren’t noted, a group of live steers sold from $211-213.
Cash trade for the week ending April 20 totaled 67,218 head. Live steers averaged $211.68, and dressed steers averaged $336.61.
“The negotiated fed cattle trade is anticipated to be higher by all cattle feeders this week, and packers are loath to pay up on top of last week’s $4 higher cash cattle market,” Cassie Fish, market analyst, wrote in The Beef on Wednesday. “Packers have slashed slaughter, but have limited other tools in their toolbox. Their margins have worsened this week.”
Slaughter through Thursday totaled about 466,000 head, compared to 477,000 head a week earlier. Total slaughter for a week earlier is estimated at 576,000 head. Actual slaughter for the week ending April 12 was 563,972 head. The average steer dressed weight was 946 lbs., 3 lbs. below the week prior.
Boxed beef prices traded sideways over the week, gaining less than a dollar on the Choice cutout to $333.70 and losing a few cents on the Select cutout to $316.35.
“It is highly probable boxed beef values will rally in the next 4-8 weeks. But if the rally underperforms, packers may be forced to reduce throughput in order to manage red ink,” Fish said on Thursday.
Feeder cattle
Feeder cattle futures closed higher, up about $3 on the May contract to $289.07 and up $1.83 to $292.70 on the August contract.
The CME Feeder Cattle Index gained just under a dollar, closing at $288.97.
Corn futures were modestly lower, down about 5 cents apiece on the May and July contracts, closing at $4.77 and $4.84, respectively.
“Last week, sale barns saw incredible demand,” wrote ShayLe Stewart, DTN livestock analyst, in her Monday midday comments. “It will be interesting to see if sales are met with the same kind of demand this week.”
Missouri: Joplin Regional Stockyards in Carthage sold 4,874 head on Monday. Compared to the previous sale, feeder steers sold from $5 lower to $10 higher. Feeder heifers sold from $5-20 higher. Benchmark steers averaging 772 lbs. sold from $287-295, averaging $291.73.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 1,582 head. Compared to a week earlier, feeders and calves sold unevenly steady. Receipts were lighter due to rain. Benchmark steers averaging 771 lbs. sold from $281-296, averaging $286.80.
South Dakota: Sioux Falls Regional in Worthing sold 1,321 head on Monday. Most weights were too lightly tested, but feeder steers over 850 lbs. sold $1-2 higher. Feeder heifers 700-800 lbs. sold $7-10 higher, 850-900 lbs. sold $4 higher and other weights were not well compared. A group of benchmark steers averaging 789 lbs. averaged $291. — Anna Miller, WLJ managing editor
