The cattle market took a dip over the week with concerns over feeder numbers once USDA reopens the border to Mexican live cattle exports, along with news of a new strain of avian influenza developing in a California dairy.
Live cattle futures were lower over the week. The February contract lost about $4 to close at $204.47, and the April contract lost about $5 to close at $201.
“In the last week, live cattle futures have fallen over $11 per cwt from all-time highs, creating a concern that traders are now searching for a sense of market support, which, after Thursday’s moves, could be hard to solidify in the near future,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
“The continued shift lower in cash cattle prices and beef values is adding to the overall futures market weakness,” she added.
Cash trade through Thursday totaled about 33,668 head. Live steers sold from $204-208, and dressed steers sold from $325-333.
Cash trade for the week ending Feb. 2 was 58,816 head. Live steers averaged $209.60, and dressed steers averaged $329.26.
Slaughter through Thursday totaled about 476,000 head. Total slaughter for the week ending Jan. 31 is estimated at 600,000 head. Actual slaughter for the week ending Jan. 25 was 593,858 head. The average steer dressed weight was 948 lbs., 6 lbs. below a week earlier.
Boxed beef prices were lower over the week. The Choice cutout lost about $4 to close at $323.98, and the Select cutout lost about a dollar to close at $314.77.
Feeder cattle
Feeder cattle futures headed lower over the week. The March contract lost $8 to close at $273.20, and the April contract lost $10 to close at $265.
The CME Feeder Cattle Index lost 42 cents to close at $279.03.
Corn futures were modestly higher over the week, up 5 cents to $4.95 on the March contract and up six cents to $5.07 on the May contract.
“Although, the most aggressive losses are seen in nearby March and April futures, all contract months are taking significant hits with concerns surrounding the opening of import levels of cattle from Mexico and how this will change the tight supply of beef currently being factored into prices,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 12,500 head on Monday. Compared to the last auction, at the mid-session, feeder steers and heifers are selling steady to $5 lower. Benchmark steers averaging 774 lbs. sold for $267-276, averaging $270.34.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,500 head on Monday. An accurate comparison could not be made at the mid-session. Benchmark steers averaging 718 lbs. sold for $268-294, averaging $282.48.
Wyoming: Winter Livestock in Riverton sold 2,647 head on Tuesday. Compared to the previous auction, feeder calves and yearlings had no comparison available due to light offering last 2-3 weeks, but prevailing markets higher overtones noted. Benchmark steers averaging 720 lbs. sold for $282-283.50, averaging $283.26. — Anna Miller, WLJ managing editor
