The cattle market struggled with cash trade over the week, failing to see much volume through Thursday.
Live cattle futures closed higher over the week. The June contract gained about $2 to close at $175.95, and the August contract gained $2.62 to close at $173.72.
“Little to no trade activity has occurred this week, not surprisingly, with processing margins negative and cattle owners on the cusp of breakeven with most sales,” the Cattle Report wrote on Thursday. “Packers would be willing to buy at steady money but cattle owners are looking for higher prices.”
Cash trade through Thursday afternoon totaled less than 5,000 head. Live steers sold from $186-187, and there was no trend for dressed steers.
Cash trade for the week ending May 5 totaled 92,693 head. Live steers averaged $185.81, and dressed steers averaged $295.
Slaughter through Thursday was projected at 489,000 head, 9,000 head more than a week earlier. Total estimated slaughter for the week earlier is expected to be 619,000 head. Actual slaughter for the week ending April 27 was 613,723 head. The average steer dressed weight was 920 lbs., 1 lb. above the prior week.
“Carcass weights seasonally bottom around Memorial Day while this year, they haven’t declined much at all—highly unusual and proof the cattle feeding industry has added days on feed,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “This is also borne out in the USDA grading data, which shows a record number of fed cattle grading Choice and Prime.”
Boxed beef prices were mixed over the week. The Choice cutout gained about $2.50 to close at $295.39, and the Select cutout lost $2.22 to close at $285.76.
The latest export report showed beef net sales were down 45% from the previous week at 12,300 metric tons (mt). The three largest buyers were Japan at 4,400 mt, South Korea at 1,900 mt and Mexico at 1,700 mt.
Feeder cattle
“The feeder cattle complex is again trailing lower as the market is desperately looking for support but is coming up short in the form of stronger boxed beef prices or any positive news yet in the cash cattle market,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
Feeder cattle futures closed lower over the week. The May contract lost $2.77 to close at $238.65, and the August contract lost 70 cents to close at $251.05.
The CME Feeder Cattle Index lost about $3 to close at $240.38.
Corn futures closed modestly lower. The May contract lost 10 cents to close at $2.42, and the July contract lost 3 cents to close at $4.56.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold steady in early sales. Benchmark steers averaging 727 lbs. sold from $247-258, averaging $249.39.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,000 head on Monday. Compared to a week earlier, feeder steers sold steady to $3 lower. Feeder heifers sold unevenly steady. Benchmark steers averaging 714 lbs. sold from $269-278, averaging $272.06.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,909 head on Monday. Compared to the previous auction, steers 750 lbs. and under were too limited for comparison, but an upward trend was noted. Steers 800 lbs. sold $3 lower, and 900 lbs. traded $5 higher. Heifers 600 lbs. sold $7-9 higher, 700 lbs. traded $2 lower and 750 lbs. were $6-8 lower. Benchmark steers averaging 773 lbs. sold between $252.50-270, averaging $259.14 — Anna Miller, WLJ managing editor
