Friday markets
On this first day of trading in the month and quarter, cattle futures closed mixed.
“With March in the rear view mirror, the late winter high made in February in both cash and futures seems longer ago just as anticipation of the summer low increases,” Cassie Fish, market analyst for The Beef, wrote.
Live cattle have struggled throughout the day, with the April contract down 72 cents to $138.65 and the June contract down $1.27 to $135.85.
Cash trade was moderate, with 3,286 head selling between $138-142, averaging $140.09. Dressed steers sold for $222. On the formula side, 21,600 head averaging 857 lbs. sold for $221.66.
Boxed beef prices closed mixed on 100 loads, with the Choice cutout down $1.25 to $267.14 and the Select cutout up 18 cents to $262.52.
Slaughter for today is projected to be 109,000 head. Saturday’s projected slaughter of 40,000 head will bring the weekly total to 639,000 head, 20,000 head below the previous week.
“Weekly fed slaughter must increase from current levels to accommodate the growing supply,” Fish wrote. “Beef packers are highly aware of this as they expect the largest quarterly throughput for their plants in 2022 will be in Q2. Q2 is also a seasonal high in wholesale boxed beef values, which means quarterly results will be stellar for packers this quarter.”
Feeder cattle
Feeder cattle closed mixed as nearby corn contracts were lower. The April contract was up 17 cents to $161.57, and the May contract was down 52 cents to $166.12. The CME Feeder Cattle Index was up 29 cents to $156.05.
Nearby corn contracts were lower, while deferred contracts closed higher. The May contract was down 13 cents to $7.35, and the July contract was down 11 cents to $7.21.
The Daily Livestock Report by Steiner Consulting Group reported there had been only two other growing seasons where intended plantings of soybeans exceeded corn. In the 1983/84 marketing year, the season-average corn price jumped 25 percent on a more than 3 million acre difference between the two. The second was 2018/19, where the difference was less than a quarter of a million acres, and season-average corn prices jumped 7 percent.
“It is very likely corn prices will entice a few more acres of corn before planting is over, which should help feed prices,” Steiner Consulting Group wrote. “However, it is very likely corn prices in 2022/23 will see double-digit percent gains from 2021/2022.”
Kansas: Pratt Livestock in Pratt sold 3,912 head Thursday. Compared to the last auction, feeder steers less than 650 lbs. sold steady to $3 lower, 650-800 lbs. sold $2-6 higher and over 800 lbs. traded $1-3 lower. Feeder heifers less than 500 lbs. sold on a light test, though a firm undertone was noted, 500-700 lbs. sold $7-9 higher and over 700 lbs. traded steady to $1 lower. Benchmark steers averaging 760 lbs. sold between $156-160 and averaged $159.64.
Montana: Billings Livestock in Billings sold 6,172 head Thursday. Compared to the previous auction, feeder steers under 550 lbs. sold steady to $5 higher, 550-799 lb. steers sold $5-10 higher and steers over 800 lbs. were not well compared. However, higher undertones were noticed. Feeder heifers under 550 lbs. sold steady to $5 higher, while heifers over 550 lbs. sold mostly $8-10 higher. Benchmark steers averaging 709 lbs. sold between $170-180, averaging $177.86.
Texas: Cattlemen’s Livestock in Dalhart sold 2,234 head Thursday. Compared to the previous auction, steer and heifer calves under 600 lbs. traded firm in a light test. Feeder steers and heifers over 600 lbs. were firm, with instances of 600-650 lb. steers selling $1 higher. Benchmark steers averaging 713 lbs. sold between $157-160, averaging $158.80. — Charles Wallace, WLJ editor
