The cattle complex continued the upward momentum from the prior week on the strength of higher cash trade. Boxed beef prices were mixed, and steer dressed weights continued to be high at 923 lbs.
Live cattle futures were higher for the week, with the June contract up $4.50 to $183.52 and the August contract up $3.70 to $181.07.
Cash trade through Thursday was 17,000 head. Live steers sold between $185-192, and there were not enough dressed steer sales for a market trend. Cash trade for the week ending May 19 was 93,719 head. Live steers averaged $188.53, and dressed steers averaged $299.50.
“The market’s primary, if not sole focus is on the strong negotiated fed cattle market, as cattle feeders enjoy all the leverage at present,” Cassie Fish, market analyst, wrote for The Beef on Thursday. “Negotiated fed cattle in Texas and Kansas have sold at $187, $1 higher than a week ago and the highest since March. The North is holding out for new highs for the year and there are bids as high as $302 dressed and $192 live being passed.”
Slaughter through Thursday is estimated to be 486,000 head. Actual slaughter for the week ending May 11 was 615,769 head. The average dressed steer weight was 923 lbs., the same as the prior week. Last week’s estimated slaughter was 598,000 head, down 24,000 head from the prior week. Total beef production under federal inspection for the week ending May 18 was 507.1 million pounds.
Boxed beef prices were mixed, with the Choice cutout down 31 cents to $309.84 and the Select cutout up $3.57 to $300.08.
“Friday’s USDA Cattle on Feed (COF) report will have a bullish appearance,” Fish wrote on Thursday. “Thanks to two extra harvest days, marketings will be up 9-10% from a year ago. Placements will be down 6-7% leaving COF down about 0.5-0.9%, finally dropping below a year ago.”
Feeder cattle
Feeder cattle futures were higher, with the May contract up $5.47 to $250.32, the August contract up $4.10 to $261.45 and the September contract up $4.20 to $262.72. The CME Feeder Cattle Index was up $6.48 to $248.81.
“It’s significant to see the spot August contract trading above its 100-day moving average, which is also likely adding fuel to the live cattle complex as the feeder cattle market’s power is strong this morning,” ShayLe Stewart, DTN livestock analyst, wrote in Wednesday’s midday comments. “The May 2024 feeder cattle contract will expire Thursday, and currently there’s a $12 spread between the May 2024 and August 2024 feeder cattle contracts.”
Corn futures were higher, with the July contract up 7 cents to $4.64 and the September contract up 6 cents to $4.73.
Missouri: Joplin Regional Stockyards in Carthage sold 9,804 head on Monday. Compared to the last auction, feeder steers sold from $4 lower to $10 higher. Feeder heifers sold $6-12 higher. Benchmark steers averaging 724 lbs. sold between $259-267, averaging $260.24.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,751 head on Monday. Compared to the last auction, steers sold $3-6 higher and heifers traded $4-8 higher. Benchmark steers averaging 722 lbs. sold between $267-279, averaging $276.17. — Charles Wallace, WLJ contributing editor
