The market plummeted lower over the week following selloffs that presumably can be attributed to the concerns associated with the spread of highly pathogenic avian influenza (HPAI) in livestock.
“The market has been recently pressured by the nervousness surrounding the HPAI flu affecting dairy cattle and by the pullback of traders as hesitancy and cautiousness seem to be the futures market’s theme despite the market’s bullish fundamentals not having changed,” ShayLe Stewart, DTN livestock analyst, wrote in her Monday midday comments.
Live cattle futures regained some of their $5 losses from Monday, but ultimately closed lower over the week. The April contract lost about $3.50 to close at $181.47, and the June contract $4.40 to close at $175.85.
“A market that has fallen as far as this one has, that hangs around in the same trading range for 3 days, near the low is not action that inspires confidence of a low,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “The news cycle has been quiet yet the market has not shaken off the uncertainty of the last few weeks.”
Cash trade through Thursday totaled under 40,000 head. Live steers sold from $186-188, and dressed steers sold from $295-298.
Total cash trade for the week ending March 31 totaled 63,695 head. Live steers averaged $188.22, and dressed steers averaged $299.64.
Slaughter through Thursday totaled 474,000 head, compared to 483,000 head a week earlier. Total slaughter for a week earlier is estimated at 586,000 head, compared to 645,000 head a year earlier. Actual slaughter for the week ending March 23 was 592,712 head. The average steer dressed weight was 924 lbs., 2 lbs. higher than the prior week.
Boxed beef prices dropped over the week. The Choice cutout lost more than $10 to close at $297.15, and the Select cutout lost about $5 to close at $296.05.
Feeder cattle
Feeder cattle futures also closed lower over the week, after losing $6-7 on Monday. The April contract lost about $4.40 to close at $242.70, and the May contract lost about $4.80 to close at $243.87.
“Technically speaking, May feeder cattle have broken below their one-month low and are wrestling with the 100-day average near $244.00,” wrote Todd Hultman, DTN lead analyst, in his Thursday midday comments. “A weekly close below $244, if it happened, would indicate a weak market with more bearish potential.”
The CME Feeder Cattle Index gained about 90 cents to close at $249.90.
Corn futures were modestly lower. The May contract lost 7 cents to close at $4.35, and the July contract also lost 7 cents to close at $4.47.
Kansas: Winter Livestock in Dodge City sold 2,227 head on Wednesday. Compared to the last auction, steers over 750 lbs. sold $6-10 lower. There were not enough sales for an accurate comparison on steers under 750 lbs. Benchmark steers averaging 771 lbs. sold between $237.10-247.50, averaging $241.50.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Compared to the last sale, at the mid-session, feeder steer calves sold steady to $8 higher. Feeder heifers sold steady to $5 lower. Benchmark steers averaging 720 lbs. sold from $254-261, averaging $258.94.
Nebraska: Tri-State Livestock in McCook sold 1,221 head on Monday. Due to a lack of recent sales, an accurate comparison was not available. Benchmark steers averaging 733 lbs. sold between $258-262, averaging $259.09.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 3,500 head on Monday. The bulk of supply was mostly plain in quality and sold steady. Steers and heifers of good quality sold $4-8 higher in a light showing. Benchmark steers averaging 776 lbs. sold from $243-271, averaging $247.10.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,972 head on Monday. Compared to the last sale two weeks earlier, steers 450-500 lbs. sold sharply lower, 650-800 lbs. sold in instances of $1 higher and 850-900 lbs. sold $3-4 lower. Heifers 600-750 lbs. sold $2-6 higher, 700-750 lbs. sold $4-11 lower and 800-900 lbs. sold $8 higher. — Anna Miller, WLJ managing editor
