Friday markets
The market traded into the weekend mostly sideways, thankfully not affected too much by USDA’s newest World Agricultural Supply and Demand Estimates (WASDE) report.
Live cattle futures were lower today. The April contract lost 17 cents to close at $137.82, and the June contract lost 27 cents to close at $133.82.
There was a small amount of cash trade to round out the week, with 2,909 head sold. Live steers sold from $138-141, and dressed steers sold for $222. On the formula side, a total of 25,600 head averaging 850 lbs. sold for an average of $222.55.
“In Friday’s WASDE report, beef production grew by 140 million pounds from last month’s report as higher placements bolster vigorous processing speeds,” said ShayLe Stewart, DTN livestock analyst, in her midday comments.
“In addition, the market continues to see more non-fed cattle slaughter than years past due to drought conditions. Quarterly prices saw minute changes from last month’s report as the first quarter fell by $0.75 to average $139.25, the second quarter held steady at $139, the third quarter remained steady at $136, but the fourth quarter grew $1 stronger to average $143.”
Slaughter for the day is expected at 120,000 head, compared to last week’s 109,000 head. With Saturday’s projected slaughter at 61,000 head, this week’s total slaughter is expected to be an impressive 676,000 head.
Boxed beef prices were moderately lower today on 92 loads. The Choice cutout lost 93 cents to close at $270.47, and the Select cutout lost 89 cents to close at $260.33.
Feeder cattle
Feeder cattle futures were mixed today but traded mostly sideways. The April contract gained 15 cents to close at $156.55, and the May contract lost 10 cents to close at $159.37.
The CME Feeder Cattle Index gained 42 cents to close at $156.01.
Corn futures were higher. The May contract gained 11 cents to close at $7.68, and the July contract gained 10 cents to close at $7.60.
“With feed prices showing no mercy, buyers have to juggle the expense of getting the cattle they buy today into the market that’s going to be hot later in 2022 and into 2023,” Stewart said.
Nebraska: Ogallala Livestock Auction in Ogallala sold 5,770 head on Thursday. There was no comparison to a previous sale. Demand was good on a good selection. Benchmark steers averaging 775 lbs. sold for an average of $165.44. — Anna Miller, WLJ managing editor
