Thursday markets
The cattle complex closed higher despite a lower export report.
Live cattle continued trading higher, with the April contract up $1.02 to $144.10 and the June contract up $1.27 to $139.90.
“The live cattle complex is striding out and touching price points that haven’t been seen since late February,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “The market is relishing in the fact that market-ready fat cattle supplies are tight and that has pushed packers into paying more for cattle this week and sent the board launching higher.”
Cash trade was moderate, with 2,413 head selling between $144-147, averaging $146.53. Dressed steers sold between $230-238 and averaged $231.95. On the formula side, 23,700 head averaging 848 lbs. sold for $223.59.
Slaughter for the day is projected to be 122,000 head, a thousand below last week.
Actual slaughter for the week ending April 9 was 664,924 head. Steer carcass weights were 912 lbs.
Boxed beef prices were mixed on 104 loads, with the Choice cutout up $1.35 to $270.17 and the Select cutout down 85 cents to $255.68.
USDA’s Weekly Export report for the April 8-14 period showed net sales of 15,000 metric tons (mt), down 13 percent from the previous week and 27 percent from the prior four-week average. Exports were 21,000 mt, up 13 percent from the previous week but down 16 percent from the previous four-week average. The destinations were primarily South Korea (6,800 mt), Japan (5,200 mt), China (3,600 mt), Taiwan (1,200 mt) and Mexico (1,000 mt).
Feeder cattle
Feeder cattle closed higher on lower corn prices. The April contract was up 95 cents to $158.45, and the May contract was up $2.37 to $164.85. The CME Feeder Cattle Index was down 76 cents to $153.90.
“The feeder cattle contracts are feeling like the perfect storm has overcome its market this week,” Stewart wrote. “Grain prices continue to trend lower as the live cattle market remains strong, which consequently is opening the door for feeders to trade higher. Drought and worries about the cost of gains (continue) to be an issue for the market, but that doesn’t mean the complex can take a bone when it’s given one.”
Corn closed lower, with the May contract down 16 cents to $7.99 and the July contract down 14 cents to $7.95.
Kansas: Winter Livestock in Dodge City sold 2,754 head Wednesday. Compared to the previous auction, feeder steers 700-950 lbs. sold $2-3 higher. Yearling steers 500-700 lbs. sold $8-9 higher. Feeder heifers 850-975 lbs. sold $4-5 higher. Yearling heifers 575-850 lbs. sold unevenly steady. Heifer calves 400-575 lbs. sold $6-8 higher. Benchmark steers averaging 738 lbs. sold between $162.50-166, averaging $163.93.
New Mexico: Clovis Livestock in Clovis sold 1,372 head Wednesday. There were not enough comparable sales for a market trend. Trade activity was light to moderate on moderate to good demand. Benchmark steers averaging 793 lbs. sold between $145.50-147.75 and averaged $147.64.
Oklahoma: OKC West in El Reno sold 7,714 head Wednesday. Compared to the last auction, feeder steers sold mostly steady. Feeder heifer traded steady to $2 lower than last week’s sharply higher heifer market. Steer and heifer calves sold $2-4 higher. Benchmark steers averaging 776 lbs. sold between $154-163, averaging $159.35.
Wyoming: Torrington Livestock in Torrington sold 1,518 head Wednesday. Compared to the last auction, steer calves traded unevenly steady, with instances of $2 lower on comparable trades to last week. Heifer calves under 650 lbs. traded unevenly steady, with instances of $2 lower. Heifer calves over 650 lbs. traded $2-3 higher. Benchmark steers averaging 762 lbs. sold for $161. — Charles Wallace, WLJ editor
