There’s no two ways about it: The markets were down last week. All indications suggest we’ve seen the seasonal tops and are heading lower, despite being a couple weeks into the traditionally best beef demand period of the year.
The negotiated cash fed cattle market got off the ground quickly and in a big way last week in terms of volume. Not so much in terms of prices. By Tuesday afternoon, over 63,000 head had been confirmed sold. That number steadily rose through the week until it was almost 121,000 head at the afternoon USDA report.
Prices paid on Thursday were $118-119 (average $118.52) live and $185-189 ($186.60) dressed. These averages were down about $5 and $10 respectively.
The cutouts fared poorly too, both losing roughly $5 with the Choice cutout closing Thursday at $222.47 and the Select cutout closing at $207.08.
For all the triple-digit drama that went on in the near-term futures, net week-to-week losses were only about $2. Compared to the Friday, May 3 settlement, last Thursday saw the June live contract down $1.48 with a settlement of $111.95. Similarly, the August live contract lost $1.55 with $107.60.
Near-term feeder futures behaved similarly, with the May contract losing a net 90 cents with $136.25 and the August contract losing $1.91 with $144.47.
Cash feeder cattle also followed their live cattle counterparts with losses of up to $10. Medium and large #1 steers weighing between 700-800 lbs. were still mostly averaging in the $140s and saw a single high in the $160s among the surveyed auctions, but the range was noticeably lower, dipping as low as $120.
California: The Cattlemen’s Livestock Market of Galt sold over 1,500 head of cattle with all classes selling steady. Benchmark steers sold between $120-140.
Colorado: The Winter Livestock auction of La Junta saw just under 2,900 head of feeders sell last week, seven times the number sold in the prior sale. There were no trends on feeder prices, but trade activity and demand were called moderate. There was one lot of 91 head of #1, 719-lb. steers that averaged $144.15.
Iowa: The Bloomfield feeder cattle auction sold 888 head of feeders last week. Feeder steers were mostly $4-8 lower, and heifers were mostly $5-10 lower. The stark exception was with 7-weight heifers being up $10. A trio of benchmark steer lots ranged from $141.50-151.50.
Kansas: The Winter Livestock auction sold 2,400 head of feeder cattle last week, roughly two-thirds of what sold the week before. Steer prices were down $5-6 with instances of $9-10 lower on most cattle. Steers over 900 lbs. were steady to down $3. Heifers were mostly $3-4 lower. Benchmark steers ranged from $128.50-146.75.
Missouri: Over 3,200 head of feeders sold at the Joplin Regional Stockyards last week, with prices on all feeders down $3-7. Demand was called moderate to light, with the report blaming the downtrend in the futures. A trio of #1, 7-weight steer lots ranged from $130-144.
Nebraska: The Huss Livestock Market saw similar numbers of feeders sell last week with prices down $4-7 for steers and $3-5 for heifers. Demand was called moderate, but the impact of the declining futures was also noted, as well as weather. Prices on benchmark steers was better at $142.50-160.75.
New Mexico: Just over 1,300 head of feeder cattle sold at the Clovis Livestock Auction last week. Feeder steers and heifers under 600 lbs. sold $5-7 lower, while heavier feeders were steady for the most part. Seven-weight steers were the exception, trading $5 lower. Prices on #1, 7-weight steers ranged from $125-143.50.
Oklahoma: Almost 6,300 head of feeder cattle sold last week at the OKC West-El Reno auction. This was down from the over 8,800 head that sold the week before. Heavy steers were mostly steady, while those under 850 lbs. were called $1-2 lower. Heifers were steady. Calves were limited but said to have a steady undertone. Benchmark steers sold between $137-149.
South Dakota: The Hub City Livestock Auction sold over 3,700 head of feeders, with the best comparable trends being found on stock over 600 lbs. Steers were steady to down $5, while heifers were mixed up and down $3, with preference going to light 6-weight heifers. Number 1, 7-weight steers traded between $143.50-159. — Kerry Halladay, WLJ editor
