Wednesday markets
“It’s a peculiar week for the livestock market as the countryside sits idly trying to assess the damage done by the recent storm in the form of lighter carcass weights, calves lost, the total amount of lost tonnage due to slower processing speeds, and the list goes on,” began DTN Livestock Analyst ShayLe Stewart in her midday comments.
Cattle contracts are down, down today and the cash market nonexistent. The icy and frigid weather has slowed all aspects of the industry to a crawl, including processing and auction market volume.
The February live cattle contract lost 85 cents to $115.30 and the April contract lost $1.65 to $124.15. February is trading at a record $9 discount to the April contract.
There has been no interest in the cash market as processors are slow.
“These slower processing speeds are working in their favor as they can pull cattle from their committed inventory and avoid having to jump into the cash market where feedlots are determined to move the market higher yet again this week,” Stewart remarked.
A measly 82 head traded on the cash market today, compared to last week’s 7,111 head and last year’s 20,812 head. Things were slow on the formula side as well: A total of 13,700 head averaging 877 lbs. were priced at $184.89.
Yesterday’s slaughter numbers were revised down to 91,000 head from 95,000 head. Today’s slaughter is projected at 99,000 head, but will likely be short of estimates again. Processors are short about 80,000 head due to the unsafe weather conditions.
Boxed beef had the only green in the cattle markets today, with the Choice cutout up $2.74 to $237.51 and the Select cutout up $3.61 to $225.64 on 70 loads.
Feeder cattle
The corn contract managed to hold steady at $5.52. Feeder cattle contracts took a dive, however. The March contract lost $2.35 to $138.42 and the April contract lost $1.85 to $142.75.
“Corn Belt states aren’t wanting to receive new cattle in these conditions,” Stewart said. “The week’s theme is to simply weather the storm and catch back up with the market’s importance late this week or early next week when things get back to normal.”
Nebraska: Bassett Livestock Auction in Bassett, NE, was one of the few barns to hold a sale Wednesday. The market sold 2,200 head, and compared to two weeks prior: 500-700-lb. steers traded unevenly steady; 550-lb. heifers traded $2 lower; and 600-650-lb. heifers traded $3-4 higher. Benchmark steers averaging 725 lbs. sold between $135.50-147. — Anna Miller, WLJ editor
