The market saw substantial gains over the week, with numbers on the board soaring higher.
Live cattle futures saw several-dollar gains over the week. The April contract gained more than $6 to close at $208.47, and the June contract gained about $7 to close at $205.02.
“As futures surge, led today by June live cattle, bullish expectations throughout the cattle industry do too,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Asking prices are sharply higher in the country.”
Cash trade through Thursday afternoon was light, with less than 2,000 head sold. Live steers sold for $202, and there was no trend noted for dressed steers.
Cash trade through March 16 totaled 81,521 head. Live steers averaged $202.89, and dressed steers averaged $324.87.
Slaughter through Thursday totaled about 440,000 head, compared to 483,000 head a week earlier. Projected total slaughter for a week earlier is estimated at 587,000 head. Actual slaughter for the week ending March 8 was 579,267 head. The average steer dressed weight was 945 lbs., 3 lbs. above the prior week.
Inclement weather reduced slaughter numbers over the week. “So far, its unclear if much of that lost production will be made up this week, especially considering packer margins are still red, even with the rally in boxed beef prices,” Fish said.
USDA did not release its Thursday boxed beef report ahead of WLJ press time due to packer submission issues. On Wednesday, boxed beef prices were higher over the week. The Choice cutout gained more than $16 to close at $329.61, and the Select cutout gained about $1 to close at $308.68.
“This sharp March rally is unusual and no doubt got an extra boost from the production loss this week compared to earlier expectations,” Fish said.
The latest Cattle on Feed report to be released Friday, March 21 was expected to show cattle on feed at 98.2% of last year. Placements are expected to be 85.6% of 2024, and markets are projected at 91.8%.
Feeder cattle
Feeder cattle futures propelled higher over the week. The March contract gained a little over $8 to close at $288.35, and the April contract gained close to $9 to close at $288.45.
The CME Feeder Cattle Index gained nearly $6 to close at $284.65.
Corn futures were modestly higher over the week. The May contract gained 4 cents to close at $4.69, and the July contract gained 3 cents to close at $4.75.
“With the spring season set to officially begin Thursday, buyer demand in the countryside has been even more aggressive this week than last week, as buyers know that supplies will run thin the closer time gets to turn out season,” wrote ShayLe Stewart, DTN livestock analyst, in her Wednesday midday comments.
Missouri: Joplin Regional Stockyards in Carthage sold 7,500 head on Monday. Compared to a week earlier, feeder steers sold steady to $15 higher. Feeder heifers sold steady to $5 higher. Benchmark steers averaging 777 lbs. sold from $278-295, averaging $284.54.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,800 head on Monday. Compared to a week earlier, feeder steers sold $5-10 higher and feeder heifers sold $2-6 higher. Demand was very good for feeder cattle. Steer calves sold $3-6 higher, and heifers sold mostly steady. Benchmark steers averaging 783 lbs. sold from $276-294, averaging $286.88.
South Dakota: Sioux Falls Regional in Worthing sold 2,453 head on Monday. Compared to a week earlier, feeder steers under 800 lbs. sold $10-15 higher, with instances of $20 higher, and over 800 lbs. sold $2-5 higher. Feeder heifers under 750 lbs. sold $8-13 higher, and over 750 lbs. sold $3-5 higher. Benchmark steers averaging 786 lbs. sold from $278-302.50, averaging $294.54. — Anna Miller, WLJ managing editor
