Futures headed lower following the Memorial Day holiday, jolted by outside market factors. Slaughter numbers for the week reflect the holiday’s impact, with one less day online.
Cattle futures traded sideways to lower over the week. The June contract lost 17 cents to close at $183.52, and the August contract lost 87 cents to close at $181.07.
“The live cattle complex hasn’t been able to shake the news that China has blocked beef imports from the JBS Greeley, CO, plant as traces of ractopamine were found in meat from that plant,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through Thursday totaled less than 10,000 head. Live steers sold from $186-190, and dressed steers sold from $298-304.
Cash trade for the week ending May 26 was 67,936 head. Live steers averaged $190.01, and dressed steers sold for an average of $303.43.
“Normally, but not always as we learned in 2023, cash fed cattle prices and boxed beef prices weaken into summer,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Will the cash cattle and beef markets trapse sideways again this summer as it did last year or not?”
Slaughter through Thursday was projected at 375,000 head, about 111,000 head short from a week earlier due to the Memorial Day holiday. Total slaughter for a week earlier is estimated at 607,000 head. Actual slaughter for the week ending May 18 was 596,918 head. The average steer dressed weight was 921 lbs., 2 lbs. lower than the prior week.
“Normally, weights increase around 50 pounds from their spring low to their Q4 high but that would seem a stretch for this year,” Fish said. “Or is the industry going to find out in 2024 just how big is too big?”
Boxed beef prices managed to climb higher following the holiday weekend. The Choice cutout gained about $5 to close at $314.04, and the Select cutout gained about $2 to close at $302.52.
USDA’s latest Cattle on Feed report released on May 24 showed cattle on feed in the U.S. totaled 11.6 million head on May 1, down 1% from last year. Placements in feedlots during April totaled 1.66 million head, 6% below last year, and feed cattle marketings were 1.87 million head, 10% above 2023. Disappearance totaled 56,000 head, 10% higher than last year.
Feeder cattle
Feeder cattle futures were also unable to find support higher. The August contract lost about $2.40 to close at $259.07, and the September contract lost about $2 to close at $260.67.
The CME Feeder Cattle Index gained 47 cents to close at $249.28.
“Fundamental demand and interest remain incredibly strong for feeder cattle and calves, but Wednesday’s announcement that China will not be accepting beef from the JBS plant in Greeley, Colorado has rattled traders and consequently the feeder cattle contracts too,” Stewart said.
Corn futures also experienced a decline, with the July contract down 16 cents to $4.48 and the September contract down 16 cents to $4.57.
Missouri: Ozarks Regional Stockyards in West Plains sold 1,836 head on Tuesday. Compared to the last auction, steer and heifer calves under 700 lbs. sold steady in a lightly tested market. The better test was on seven- and eight-weight feeder steers and heifers which sold $2-4 higher. Benchmark steers averaging 720 lbs. sold between $260-272, averaging $266.60.
Oklahoma: OKC West in El Reno sold 7,329 head on Wednesday. Compared to the last auction, feeder steers sold steady to $1 higher. Feeder heifers traded $1-4 higher. Steer and heifer calves sold mostly steady on limited comparable sales. Benchmark steers averaging 736 lbs. sold between $254-270, averaging $259.46.
South Dakota: Hub City Livestock in Aberdeen sold 2,175 head on Wednesday. Compared to the last auction, steers were not well compared. Heifers 850-899 lbs. sold steady to $4 lower, with other weight classes of heifers not well compared. Benchmark steers averaging 753 lbs. sold between $288-290.25, averaging $289.84.
Texas: Lonestar Stockyards in Wildorado sold 1,164 head on Tuesday. Compared to the last auction, feeder steers and heifers traded mostly $3-7 higher, with instances of up to $10 higher on cattle under 700 lbs. There were not enough comparable sales of steer or heifer calves for a market trend. Benchmark steers averaging 772 lbs. sold between $245-253.75, averaging $250.63. — Anna Miller, WLJ managing editor
