Amid the Russia-Ukraine conflict, the cattle market continues to trade cautiously. Futures sank lower, except for corn, which continues to head higher with each progressing day of the conflict.
“The live cattle contracts are running lower, the cash cattle market isn’t seeing much action and with tensions in Ukraine only worsening, the market will likely continue to panic in this way until something gives with Russia/Ukraine,” remarked ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Live cattle futures lost several dollars over the week. The April contract lost nearly $4 to close at $135.15, and the June contract lost $3.45 to close at $135.15.
Through Thursday, cash trade was steady but limited in volume compared to earlier weeks’ trade. As of Thursday morning, about 62,000 head had sold. Live cattle sold between $140-143, averaging closer to $140.50. Dressed steers sold between $224-228, averaging about $224.50.
Cash trade through the last week of February totaled 68,349 head, quite a few thousand head lower than the past couple of weeks. Live steers averaged $143.17, and dressed steers averaged $227.18.
The national weekly direct beef type price distribution for the week of Feb. 21 to Feb. 28 was the following on a live basis:
• Negotiated purchases: $143.26.
• Formula net purchases: $144.06.
• Forward contract net purchases: $142.54.
• Negotiated grid net purchases: $142.38.
On a dressed basis:
• Negotiated purchases: $227.02.
• Formula net purchases: $227.
• Forward contract net purchases: $214.36.
• Negotiated grid net purchases: $224.79.
Slaughter through Thursday was estimated at 493,000 head, about 15,000 head higher than the same time a week earlier. Projected slaughter for the last full week of February is 647,000 head. Actual slaughter through the week ending Feb. 19 totaled 670,195 head.
Boxed beef prices were lower another week. The Choice cutout lost nearly $5 to close at $254.35, and the Select cutout lost about $6.75 to close at $247.79.
According to the Feb. 24 Daily Livestock Report, restrictions on Russian protein purchases in the world are unlikely to impact global trade.
“However, Russia and Ukraine are major contributors to global grain and oil trade and they are also major suppliers of fertilizers,” the report read. “High feed and energy costs are negative for U.S. livestock producers and they will negatively impact their ability to bring more product to market.”
Feeder cattle
“The war will not change the numbers of cattle but skyrocketing grain prices will change their value,” wrote the Cattle Report. “Those selling feeder cattle were finding lower bids replaced by even lower bids.”
Feeder cattle futures also headed lower over the week. The March contract lost $2.75 to close at $156.35, and the April contract lost about $3.30 to close at $160.52. The CME Feeder Cattle Index lost about $4 to close at $157.78.
Corn futures sailed to $7 and then higher. The March contract gained 56 cents to close at $7.51, and the May contract gained 57 cents to close at $7.47.
“There’s one thing we need to get clear about the markets right now: These prices reflect war and fear and are not a reflection of the fundamentals of the feeder cattle market,” Stewart said. “As corn prices shoot to new highs, the feeder cattle complex is left with no other option but to shoot lower.”
Colorado: Winter Livestock inLa Junta sold 1,202 head Tuesday. Compared to a week earlier, steers under 700 lbs. sold steady to $3 lower, with the decline on 650-700 lbs. Steers over 700 lbs. were lightly tested. Heifers under 600 lbs. sold steady to $2 higher, with the advance on 450-500 lbs. Heifers 600-700 lbs. sold $3-5 lower, and over 700 lbs. sold $2-3 lower.
Iowa: Russell Livestock in Russell sold 3,680 head Monday. Compared to the previous auction, steer calves under 700 lbs. were mostly steady to $5 higher; over 700 lbs. sold mostly $3-5 higher. Heifer calves under 600 lbs. were mostly $2 higher, while the heavier heifers were mostly steady to $2 lower. Benchmark steers averaging 721 lbs. sold between $161-176.50, averaging $171.36.
Kansas: Winter Livestock in Dodge City sold 6,247 head Wednesday. Compared to the previous auction, feeder steers 550-1,000 lbs. sold steady to $5 lower. Steer calves 400-550 lbs. sold $4-6 higher. Feeder heifers 650-900 lbs. sold $5-8 lower. Heifers 550-650 lbs. sold $7-10 lower. Heifer calves 400-550 lbs. sold $3-4 higher. Benchmark steers averaging 781 lbs. sold between $148.50-157.50, averaging $153.70.
Missouri: Joplin Regional Stockyards in Carthage sold 4,500 head Monday by the mid-session. Feeder steers traded steady, and feeder heifers traded $2-4 higher. Benchmark steers averaging 785 lbs. sold between $161-163.50.
Nebraska: Tri-State Livestock in McCook sold 1,775 head Monday. Compared to the last auction, steers and heifers under 700 lbs. were steady to $7 higher, while over 700 lbs. sold steady to $6 lower. Demand was good on lighter feeders and moderate on the larger cattle. Benchmark steers averaging 720 lbs. sold between $166-177.50 and averaged $169.15.
New Mexico: Clovis Livestock in Clovis sold 1,683 head Wednesday. Compared to the last auction, feeder steers and heifers sold $2-5 lower. Benchmark steers averaging 770 lbs. sold between $149.50-154.50 and averaged $153.66.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,000 head Monday by the mid-session. Feeder steers and heifers sold unevenly steady, with a light test for most weight classes. Benchmark steers averaging 770 lbs. sold between $153-159.50.
South Dakota: Sioux Falls Regional in Worthing sold 4,380 head Monday. Compared to the previous auction, feeder steers traded steady to $5 lower, except 650-700 lbs., which were $1-4 higher, and 750-800 lbs., which sold $6-9 higher. Feeder heifers traded steady to $5 lower, except for 450-600 lbs., which were steady to $5 higher, and 700-750 lbs., which sold $2 higher. Benchmark steers averaging 726 lbs. sold between $166-176, averaging $171.60.
Wyoming: Torrington Livestock in Torrington sold 4,375 head Wednesday. Compared to the previous auction, steer and heifer calves traded $3-6 lower. All of the offerings consisted of long-time weaned calves, with most of the trade being smaller package trade. Benchmark steers averaging 736 lbs. sold between $164-170.50 and averaged $169.08. — Anna Miller, WLJ managing editor
