Tuesday markets
A winter storm continues to sweep across the Plains, making cattle transportation to markets and processing facilities difficult, if not impossible. Most aspects of the market were down, including prices and volume.
“With large accumulations of snow, temperatures well below zero and wind that cuts through every layer of clothing imaginable—cattlemen are making their rounds and praying this storm breaks sooner rather than later as feeding cattle isn’t lucrative whatsoever when cattle are losing weight—as many are with these conditions,” remarked ShayLe Stewart, DTN livestock analyst, in her midday comments.
Stewart added that asking prices are still unknown for the week, but feedlots are anticipating to price cattle higher and should see moderate demand from packers.
“Unfortunately (for feedlots’ sake) packers have a plethora of cattle already secured for this time so their interest in the cash market will be touch and go,” Stewart said.
Live cattle markets were mixed: The February contract was down $1.05 to $116.15 while the April contract was up 62 cents to $125.80.
Cash trade has been at a standstill, with only 69 head trading today—not enough for a market trend. Formula cattle numbers were also down, with 11,400 head averaging 879 lbs. priced at $183.09.
Boxed beef saw some gains today, with the Choice cutout up $2.33 to $234.77 and the Select cutout up 62 cents to $222.03 on 78 loads.
Cattle slaughter volume was minimal again today, with only 95,000 head processed. Last week a total of 115,000 head passed through the plants, and last year, 125,000 head. To date this week, a total of 174,000 head have been processed—about 55,000 head behind schedule. Yesterday’s slaughter also revised down to 79,000 head from 92,000 head.
Feeder cattle sales
Most sale barns across the Plains have cancelled their sales for the week, hoping to pick up again next week once the weather is safer to travel in.
“It is a brutal time to be a cattle feeder as keeping cattle alive and healthy through these storms is no easy feat and isn’t for the weakhearted,” Stewart commented.
The corn contract rallied today, gaining 13-and-a-half cents to $5.52, bringing feeder cattle contracts lower. The March contract was down 7 cents to $140.77 and the April contract was down 12 cents to $144.60.
The latest Feeder Cattle Index was down 2 cents to $135.55, using only data from the auction market in Worthing, SD, as it was the only barn to hold a sale Monday.
Montana: Miles City Livestock Commission was one of the few to host a sale today. A total of 1,100 head sold, with the best test on steers 650-699 lbs., which sold steady. All other steer weights were too lightly tested to develop an accurate market trend, however higher undertones were noticed. Heifers were too lightly tested this sale and last to develop a full market trend, but steady to higher undertones were noticed. Benchmark steers averaging 679 lbs. sold between $149-151. — Anna Miller, WLJ editor
