The market traded higher over the week, bolstered by lower corn prices. Futures were higher on the board, having had a slower start to the week with the market closed on Monday for Presidents Day.
Live cattle futures were higher, with the February contract up $2.38 to $165.15 and the April contract up $1.25 to $165.32.
Cash trade through Thursday morning was about 20,000 head. Live steers sold from $160-164, and dressed steers sold from $258-260.
“The cash cattle market hasn’t seen any trade develop as feedlots are willing to wait the week out to the bitter end, as they believe this week’s Cattle on Feed report could add another bullish feather (to) the market’s hat,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
“It was interesting to note in the morning’s USDA Livestock Outlook that the 5-area steer prices for 2023 is forecasted to average a record of $15, which is approximately $15/cwt above 2022’s average prices, and it eclipses the previous record set in 2014,” Stewart continued. “That supportive news has encouraged feedlots and trades alike this morning and it’s likely that we don’t see much more cash cattle trade until Friday.”
Cash trade for the week ending Feb. 19 totaled 76,616 head. Live steers averaged $161.09, and dressed steers averaged $256.80.
The national weekly direct beef type price distribution for the week of Feb. 13-20 was the following on a live basis:
• Negotiated purchases: $161.06
• Formula net purchases: $161.57.
• Forward contract net purchases: $170.39.
• Negotiated grid net purchases: $163.80.
On a dressed basis:
• Negotiated purchases: $256.63.
• Formula net purchases: $257.47.
• Forward contract net purchases: $249.22.
• Negotiated grid net purchases: $253.71.
Slaughter through Thursday was estimated at 478,000 head. A week earlier, slaughter was projected at 627,000 head. Actual slaughter for the week ending Feb. 11 was 627,845 head. Dressed steer weights averaged 902 lbs.
Boxed beef prices were up over the week. The Choice cutout gained over $8 to close at $287.91. (Editor’s note: The Choice cutout was incorrectly reported as $179.55 in the Feb. 20 issue of WLJ. The correct figure was $279.55.)The Select cutout was up over $13 to close at $275.87.
“Cattle slaughter is down sharply from 2022, and with weights down as well, beef production is dramatically below the last couple of years,” wrote Cassie Fish, market analyst, in The Beef. “This factor ensures higher wholesale beef prices in 2023 compared to other years, potentially beating out the all-time high, annual choice boxed beef cutout value established in 2021, $279.82.”
Feeder cattle
Feeder cattle futures were several dollars higher over the week. The March contract gained $3 to close at $189.22, and the April contract gained $3.07 to close at $193.67.
The CME Feeder Cattle Index lost 49 cents to close at $182.57.
Corn futures saw some losses, with the March contract down 16 cents to $6.60 and the May contract also down 16 cents to $6.59.
“With high inputs being potentially the biggest limiting factor in the feeder cattle business, hearing that more acres are expected to be planted in corn and that prices could be cheaper lent some relief immediately to the feeder cattle market,” Stewart said.
Colorado: Winter Livestock in La Junta sold 854 head on Tuesday. Compared to a week earlier, steers under 500 lbs. sold in a light test at steady to $2 lower, and 500-700 lbs. sold steady to $2 higher. Heifers 400-500 lbs. sold $3-5 higher; 500-700 lbs. sold steady to $2 higher. Feeder steers 700-850 lbs. sold $2-4 higher, while over 850 lbs. sold steady. Benchmark steers averaging 777 lbs. sold between $183-185.50, averaging $184.06.
Iowa: Russell Livestock in Russell sold 4,453 head on Monday. Compared to the last sale two weeks earlier, steers sold steady to $8 higher. Heifers over 500 lbs. sold $2-9 higher, while heifers under 500 lbs. sold sharply higher. Benchmark steers averaging 729 lbs. sold between $180-203, averaging $199.34.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head on Monday. Compared to a week earlier, feeder steers under 425 lbs. traded $6-10 higher, with heavier weights steady to $3 higher. Feeder heifers under 400 lbs. traded up to $10 higher, with heavier weights steady to $5 higher. Benchmark steers averaging 729 lbs. sold from $185-198, averaging $189.17.
Nebraska: Tri-State Livestock in McCook sold 2,165 head Monday. Compared to the last auction, steers sold steady to $9 higher, except 800 lbs. steers were $3 lower. Heifers sold $4-12 higher, except 600 lbs. were $6 lower. Benchmark steers averaging 688 lbs. sold between $180-199, averaging $196.97.
New Mexico: Roswell Livestock Auction in Roswell sold 1,708 head on Tuesday. Compared to a week earlier, steer and heifer calves under 350 lbs. were not well tested. Steer calves 350-500 lbs. sold steady to $3 higher, 500-550 lbs. traded $5 lower, with 550-600 lbs. trading $7-13 higher. Heifer calves 300-500 lbs. sold mostly $4-8 lower, and 500-600 lbs. sold $3-8 higher. Feeder steers sold steady to $3 higher. Feeder heifers sold $5-10 higher, with instances of $14 higher. Benchmark steers averaging 801 lbs. sold between $166-177.75, averaging $177.56.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,000 head on Monday. Compared to a week earlier, feeder steers sold steady to $3 higher, with 650-700 lbs. sharply higher at $10-16. Feeder heifers were $4-7 higher. Steer and heifer calves were $4-7 higher. Benchmark steers averaging 773 lbs. sold from $176-188, averaging $182.08.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 6,461 head Monday. Compared to the previous auction, feeder steers sold steady to $3 higher, except 400-450 lbs. and 850-900 lbs. traded steady to $2 lower. Feeder heifers sold steady to $3 higher, except 400-500 lbs., 550-600 lbs. and 700-750 lbs. traded $2-5 lower. Benchmark steers averaging 722 lbs. sold between $189.50-197 and averaged $194.66. — Anna Miller, WLJ managing editor
