Thursday markets
Cattle markets are in a wait-and-see mode for tomorrow’s World Agricultural Supply and Demand Estimates (WASDE) report to see if it will boost feed prices. The cattle complex closed mixed.
Live cattle closed the day mixed, with the April contract up 30 cents to $138 and the June contract down 12 cents to $134.10.
“The live cattle futures chart is relatively quiet so far Thursday, but it does give the impression of a cobra silently coiling and preparing to strike in one direction or another,” Elaine Kub, DTN contributing analyst, wrote in the midday comments.
Cash trade was moderate, with 5,411 head selling between $140-141, averaging $140.51. Dressed steers sold between $222-226 and averaged $225.29. Negotiated cash trading has been mostly inactive on light demand in all regions—not enough purchases in any region for a full market trend. On the formula side, 27,200 head averaging 877 lbs. sold for $225.31.
Slaughter for the day is projected to be 124,000 head, 3,000 above last week.
Actual slaughter for the week ending March 26 was 657,471 head. Steer carcass weights were 910 lbs.
“This past week’s slaughter faltered at week’s end and fell 20,000 head from the previous week’s 659,000 head,” the Cattle Report wrote. “Nothing is more critical to the cash prices for cattle than maintaining adequate slaughter volumes. The failure of the beef companies to sustain a higher level of slaughter penalizes the consumer with higher prices and the producers with insufficient prices that ultimately will force continuing liquidation.”
Boxed beef prices closed mixed on 94 loads, with the Choice cutout down 4 cents to $271 and the Select cutout up 17 cents to $261.22.
USDA’s Weekly Export report for the March 25-31 period showed net sales of 14,000 metric tons (mt), down 39 percent from the previous week and down 43 percent from the prior four-week average. Exports were 19,300 mt, down 5 percent from the previous week and 18 percent from the prior four-week average. The destinations were primarily Japan (5,400 mt), South Korea (5,400 mt), China (3,400 mt), Taiwan (1,500 mt) and Mexico (900 mt).
Feeder cattle
Feeder cattle closed the day lower on nearby contracts, with the April contract down 70 cents to $156.40 and the May contract down 47 cents to $159.47. The CME Feeder Cattle Index was up 5 cents to $155.59.
“Weighted average prices out of sale barns in recent weeks have been keeping the CME Feeder Cattle Index steady between $155 and $156,” Kub said. “The bigger threat is probably the upcoming WASDE report on Friday, which could boost feed grain prices (again).”
Corn was slightly higher, with the May contract up a penny to $7.57 and the July contract up 3 cents to $7.50.
Nebraska: Bassett Livestock in Bassett sold 6,590 head Wednesday. There is no recent market test for an accurate comparison of a trend for steers or heifers. Benchmark steers averaging 772 lbs. sold between $161-162.50 and averaged $162.02.
Oklahoma: OKC West in El Reno sold 7,412 head Wednesday. Compared to the previous auction, feeder steers and heifers sold mostly $2-5 lower, except for a few cattle in grazing condition trading steady. Steer and heifer calves saw a few trades steady on 5 weights, but the remainder of the sale traded $2-8 lower. Benchmark steers averaging 722 lbs. sold between $154-164.50, averaging $161.51.
South Dakota: Hub City Livestock in Aberdeen sold 3,700 head Wednesday. Compared to the last auction, steers 700-1,000 lbs. sold mostly steady, with instances up to $2 lower, except for 750-800 lbs., which were not well compared. Heifers were also not well compared. Benchmark steers averaging 722 lbs. sold between $162-168, averaging $165.15.
Wyoming: Torrington Livestock in Torrington sold 2,895 head Wednesday. Compared to the previous auction, steer calves under 500 lbs. traded mostly steady, and 500-800 lbs. traded $3-6 lower. Steer calves over 800 lbs. traded mostly steady. Heifer calves traded $3-5 lower. Benchmark steers averaging 725 lbs. sold between $162-170.50 and averaged $165.02. — Charles Wallace, WLJ editor
