Cash trade rallied mid-week, bringing futures higher with it. Slaughter levels through Thursday were running a few thousand head behind a week earlier, just ahead of the Memorial Day weekend.
Live cattle futures were higher. The June contract gained close to $2, closing at $167.30, while the August contract gained just over a dollar, closing at $164.77.
“Many of the nearby live cattle contracts are trading at new contract highs as the market continues to rally on Wednesday’s strong performance in the cash cattle sector,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
“It’s been a good week for cattle market bulls,” wrote Cassie Fish, market analyst, in The Beef. “The negotiated fed cattle trade was active and at higher money.”
Cash trade through Thursday totaled more than 85,000 head. Live steers sold from $170-185, averaging $178.16. Dressed steers sold from $280-287, averaging $284.86.
Cash trade through the week ending May 19 totaled 75,035 head. Live steers averaged $175.51, and dressed steers averaged $280.69.
Slaughter through Thursday totaled 498,000 head. Projected slaughter for a week earlier is estimated at 642,000 head. Actual slaughter for the week ending May 13 was 644,313 head. The average dressed steer weight was 891 lbs., 4 lbs. lower than the prior week.
Boxed beef prices traded mostly steady, with the Choice cutout up $1.63 to $299.94 and the Select cutout up 93 cents to $284.54.
“Packers will likely slow production in July and August to attempt to back cattle prices down, but they will be challenged to do so in a meaningful amount,” Fish said. “This year’s summer low may be a higher low than many expect and the discount in CME cattle futures would then prove to be too great.”
Feeder cattle
Feeder cattle futures traded steady to higher, with the May contract up $2.85 to close at $208.95 and the August contract up just 10 cents to $234.60.
The CME Feeder Cattle Index gained more than $5, closing at $208.14.
“The stronger the live cattle complex can run, the more opportunities that come to mind for the feeder cattle complex, as feeder cattle buyers simply possess more options in market their fats,” Stewart said.
Corn futures jumped higher, with the July contract up 35 cents to $5.90 and the September contract up 15 cents to $5.10.
Kansas: Winter Livestock in Dodge City sold 1,133 head Wednesday. Compared to the previous auction, feeder steers 600-925 lbs. sold $8-12 higher. Steer calves 400-600 lbs. sold $20-30 higher. Feeder heifers 700-875 lbs. sold $8-12 higher. Heifer calves 500-700 lbs. sold $20-30 higher. Benchmark steers averaging 768 lbs. sold between $189-196, averaging $192.72.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head on Monday. At the mid-session, compared to a week earlier, feeder steers and heifers sold $2-5 higher. Benchmark steers averaging 786 lbs. sold from $209-215, averaging $210.46.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,800 head on Monday. At the mid-session, compared to the previous week’s light test, feeder steers sold $3-6 higher and feeder heifers sold $8-10 higher. Steer and heifer calves sold steady to $4 higher. Benchmark steers averaging 775 lbs. sold from $204-216.50, averaging $211.31.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 2,760 head Monday. Compared to the previous auction, feeder steers and heifers sold $7-11 higher, with instances of $36 higher on lighter steers. Benchmark steers averaging 773 lbs. sold between $226-234, averaging $228.57. — Anna Miller, WLJ managing editor
