Cattle markets closed over the week with red on the board and inactive cash trade. Traders may have been spooked by the speculations resulting from the news of the dairy cattle infected with highly pathogenic avian influenza.
Live cattle futures were down several dollars, with the April contract down about $3.40 to $185 and the June contract down $4.25 to $180.25.
“This last trading day of the week, month and quarter will end with an outside month and lower close, after making a new high for the year in all but April LC,” Cassie Fish, market analyst, wrote in The Beef on Thursday. “This is a bearish look no matter one’s fundamental leanings.”
Cash trade over the week was slow to get started, with about 22,000 head sold through Thursday afternoon. Live steers sold from $184-189, and dressed steers sold from $297-300.
Cash trade for the week ending March 24 totaled 98,759 head. Live steers averaged $189.93, and dressed steers averaged $302.14.
“Packers would love to move the week’s weighted average down $1 or $2, but feedlots are equally convicted to keeping prices as strong as possible,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
The national weekly direct beef type price distribution for the week of March 18-25 was the following on a live basis:
• Negotiated purchases: $189.63.
• Formula net purchases: $189.95.
• Forward contract net purchases: $188.45.
• Negotiated grid net purchases: $188.92.
On a dressed basis:
• Negotiated purchases: $302.08.
• Formula net purchases: $298.36.
• Forward contract net purchases: $302.06.
• Negotiated grid net purchases: $296.10.
Slaughter through Thursday was estimated at 483,000 head. Projected slaughter for the week prior is expected to be 598,000 head. Actual slaughter for the week ending March 16 was 597,391 head. The average steer dressed weight was 922 lbs., the same as the prior week.
Boxed beef prices were lower over the week, with the Choice cutout down over $5 to close at $308.36 and the Select cutout down about $2.50 to close at $301.17.
“Despite kill cuts and a likely 585k head weekly slaughter this week, boxed beef prices have struggled, losing about $5/cwt from a week ago,” Fish said. “The Choice/Select spread has narrowed in to $7.19. Lower boxes despite smaller production.”
The latest Cattle on Feed report showed total cattle on feed in February at 11.8 million head, 1% higher than last year. Placements were 10% higher at 1.89 million head, the highest February placement since reporting began in 1996. Marketings of fed cattle totaled 3% higher at 1.79 million head, and other disappearance totaled 56,000 head, 3% below last year.
Feeder cattle
Live cattle futures were down several dollars, with the March contract down just over $3 to $247.75 and the April contract down $7.50 to $247.12.
The CME Feeder Cattle Index lost about $2.80 to close at $248.99.
Corn futures were up slightly, with the May and July contracts up two pennies to close at $4.42 and $4.54, respectively.
“One notable statistic is the decline currently being reported in feedlot arrival weights,” the Cattle Report wrote on Thursday. “Recent placements are averaging 50 pounds under last year. This is driven by cheaper feed and competition from the feedlot for production pounds that now are frequently cheaper in the feedlot than outside on pasture.”
Colorado: Winter Livestock in La Junta sold 499 head on Tuesday. Compared to the last auction, feeder steers sold mostly $4-9 higher, with instances of sharply higher. Sales of feeder heifers were too light for an accurate test. A group of steers averaging 745 lbs. sold for $246.
Kansas: Winter Livestock in Dodge City sold 1,105 head on Wednesday. Compared to the previous auction, feeder steers 850-950 lbs. sold steady to $4 higher and 650-850 lbs. sold unevenly steady. Steer calves 450-650 lbs. sold $8-10 higher. Feeder heifers 450-900 lbs. sold $4-8 lower. Benchmark steers averaging 780 lbs. sold between $238.10-249.50, averaging $244.19.
Missouri: Joplin Regional Stockyards in Carthage sold 6,500 head on Monday. Compared to a week earlier, feeder steers sold steady to $7 lower. Feeder heifers sold from $6 lower to $7 higher. Benchmark steers averaging 774 lbs. sold from $255-265, averaging $259.61.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to a week earlier, feeder steers sold $3-6 lower, feeder heifers sold $4-8 lower, steer calves sold steady to $5 lower and heifer calves sold steady to $2 lower. Benchmark steers averaging 774 lbs. sold from $242-258.50, averaging $252.60. — Anna Miller, WLJ managing editor
