Friday Markets
Cattle markets were quiet today after rallying on Thursday.
Shaylee Stewart, DTN livestock analyst, said, “The cattle market has been one of the very last markets to recover from COVID-19’s disruption, and feedlots are again starting to get paid what their cattle are worth. Boxed beef prices also are continuing to rally, which favors feedlots’ position to ask more for their cattle, week in and week out. With Memorial Day the next major holiday, packers will be looking to push product out to retailers, as this year’s grilling season is expected to draw in a large magnitude of customers.”
Live cattle was down, with the April contract lower 72 cents at $123.42 and the June contract lower $2.45 at $122.80. The USDA reported that Friday’s cash trade was limited on light demand in Kansas, Nebraska, and the western Corn Belt with a few live and dressed purchases in the western Corn Belt at 125.00 and 196.00, respectively enough purchases in any region for a full market trend. A total of 6,356 head sold between $123-125, averaging $124.50. Formula purchases were 30,500 head with a weighted average of 844 lbs. trading at $189.40.
Boxed beef market moved higher, with Choice trading at $272.17, up $1.67 and Select up 24 cents to $264.07 on 87 loads. Slaughter levels so far this week are 641,000 head compared to 609,000 last year. Slaughter numbers this week, with good Saturday numbers, could reach 690-700,000 head this week.
Feeder Cattle
Feeder cattle markets followed live cattle trading lower. April contracts were down $2.37, trading at $144.75 and the May Contract also down $1.97, trading at $149,62.
“Feeder cattle futures are still anxious to trade higher and are being positively charged by the action developing throughout the cash cattle market,” Stewart said. “But the healthy rally in Thursday morning’s corn market has sent the feeder contracts slightly lower. With the cost of grains being a concern throughout the entire nation, feedlots are having to get creative with their feed rations and are looking for alternatives to use besides having to feed corn.”
Following today’s WASDE report, corn futures were mixed with the May contract lower 2 cents trading at $5.77 a bushel and the July contact up a fraction at $5.62 a bushel. Distillers’ dried grains were up this week, with prices reported in Nebraska at $225 up $5 from last week.
South Dakota: Mitchell Livestock Marketing in Mitchell sold 3,544 head and reported. “Compared to last week: A higher undertone was noted on steers up to 700 lbs. Steers 700-1100 lbs. were $1-5 higher, instances $8-9 on higher on steers 750-800 lbs. and 850-900 lbs. A lower undertone was noted on heifers up to 650 lbs. Heifers 650- 950 lbs. were $2.00 -$6.00 higher. There were many loads lots in today’s offering. Demand was good”. Benchmark Steers weighing 761 lbs. averaged $153.61. — Charles Wallace, WLJ editor
