Cattle futures traded higher to start the week but headed lower mid-week as the market worked through mixed signals.
Live cattle futures closed sideways, up 30 cents on the April contract to $250.30 and up about $2 on the June contract to $247.62.
“All live cattle contracts made contract highs this week and all are now lower on the week, a bearish technical indicator,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “At the very least the market is setting up a more significant technical correction.”
She added, “The monthly low for now appears secure and in the greater scope, another run of the highs will probably occur in May/June.”
Cash trade through Thursday totaled about 18,000 head. Live steers sold from $246-248, and dressed steers sold from $388-392.
Cash trade for the week ending April 12 totaled 39,991 head. Live steers averaged $248.52, and dressed steers averaged $388.44.
“The diminished sales volume of fed cattle last week created two new developments in this week’s cash markets,” the Cattle Report wrote on Thursday. “Small sales last week created larger show lists in all regions this week. Moreover, it shortened packers inventory to the point that they came out bidding on cattle Monday morning.”
Slaughter through Thursday totaled about 429,000 head, compared to 425,000 head a week earlier. Total slaughter for a week earlier is estimated at 512,000 head.
Actual slaughter for the week ending April 6 was 527,826 head. The average steer dressed weight was 981 lbs., down 2 lbs. from the prior week.
Boxed beef prices traded steady to lower over the week, with the Choice cutout up about 50 cents to $381.57 and the Select cutout down about $3 to $378.48.
“It’s really too early to have bullish boxed beef expectations but with throughput historically low for April, it was hoped the smaller production would have a more positive price impact,” Fish said.
Feeder cattle
Feeder cattle futures also sold mostly sideways, with the April contract up about 50 cents to $373.07 and the May contract down about $3 to $367.10.
The CME Feeder Cattle Index gained nearly $15 to close at $379.09.
Corn futures sold mostly steady, up 4 cents on the May contract to $4.48 and up 2 cents on the July contract to $4.57.
Iowa: Russell Livestock in Russell sold 3,520 head on Monday. A comparison could not be made due to the lack of a recent auction. Benchmark steers averaging 776 lbs. sold for $381-406, averaging $396.84.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head on Monday. Compared to a week earlier, at the open, feeder steers sold $10-15 lower. Feeder heifers sold steady to $10 lower. Benchmark steers averaging 764 lbs. sold from $375-390, averaging $386.77.
Nebraska: Gordon Livestock in Gordon sold 1,205 head on Tuesday. An accurate trend could not be provided due to a lack of a recent auction. Benchmark steers averaging 775 lbs. sold from $389-400.50, averaging $393.77.
New Mexico: Roswell Livestock in Roswell sold 1,243 head on Tuesday. Compared to the previous auction, steer calves 300-500 lbs. had no comparable sales, but a higher market was noted, and 500-600 lbs. sold $5-8 lower. Feeder steers 600-750 lbs. sold $15-22 higher. Heifer calves 400-500 lbs. were $5-7 higher, and 500-600 lbs. sold sharply higher. Benchmark steers averaging 705 lbs. sold from $397-405, averaging $398.04.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,000 head on Monday. Compared to a week earlier, at the mid-session, feeder steers sold steady to $5 higher and feeder heifers sold $10-15 higher. Steer and heifer calves sold mostly steady, except 500-600-lb. heifer calves sold up to $25 higher. Benchmark steers averaging 769 lbs. sold from $369-388, averaging $385.30.
South Dakota: Sioux Falls Regional in Worthing sold 5,597 head on Monday. Compared to the last auction, feeder steers and heifers sold $5-15 higher. Benchmark steers averaging 781 lbs. sold for $383-416, averaging $400.21.
Texas: Lonestar Stockyards in Wildorado sold 1,121 head on Tuesday. Compared to the last auction, feeder heifers weighing between 500-700 lbs. traded $15-20 higher. There were not enough comparable sales in other classes to establish a market trend. Benchmark steers averaging 754 lbs. sold for $393. — Anna Miller Fortozo, WLJ managing editor
