Thursday markets
Both live cattle and feeder cattle were lower today.
Live cattle contracts were down slightly from the week prior, with the February contract at $115.32 and the April contract at $123.12.
The cash cattle market experienced more volume throughout the week compared to prior weeks, which relied mostly on the latter part of the week for much trade to take place. Cash prices were around $114 for live cattle and $180 for dressed steers.
“With the drastically cold temperatures the country has faced this week, the cash cattle market sits in the fine position to demand higher prices, although packers are scrambling to find an out as opposed to paying more again this week,” ShayLe Stewart, DTN livestock analyst, commented in her Thursday midday comments.
Slaughter as of Thursday was projected at 461,000 head, several thousand head below the week and year prior—likely as a result of a Cargill plant down for maintenance.
Boxed beef prices traded mixed all week, but ultimately ended Thursday a few dollars short of the week prior, with the Choice cutout at $232.96 and the Select cutout at $220.29.
Feeder cattle
Feeder cattle have been on an upward trend with the corn contract losing some weight after a recent bearish WASDE report. However, the trend lasted only for a couple of days before the March corn contract found its momentum again.
As of Thursday, the March feeder cattle contract was sitting at $139.15 and the April contract at $143.47, down from yesterday. The latest CME Feeder Cattle Index was reported at $135.49, down from Wednesday. March corn was down a few pennies to $5.41.
“With temperatures as bitterly cold as they are, across the nation cattle stress indexes have spiked as cattle go from using their rations to digest and convert feed into extra pounds to now using their feed as a heat resource and are trying to simply maintain condition through the adverse conditions,” Stewart said.
Colorado: Winter Livestock in La Junta sold 3,344 head Tuesday. Compared to the previous sale, feeder steers under 550 lbs. sold steady to $2 lower; 550-700 lbs. sold $3-5 higher; over 700 lbs. sold steady to $1 higher. Feeder heifers under 550 lbs. sold mostly steady, with instances of $5 higher on thin-fleshed fancy lots; 550-700 lbs. sold $1-3 higher; over 700 lbs. sold steady. — Anna Miller, WLJ editor
