Tuesday markets
Slaughter speeds are higher, but live cattle traded lower today. Feeder cattle were also unable to find any momentum and were also in the red. Cash cattle trade remains slow and unwilling to climb any higher.
Live cattle contracts were down 10 cents on the February contract to $115.62 and $1.85 on the April contract to $121.20.
“Come Friday, the February live cattle contract will expire, and the market’s heart and soul will lie in the beloved April contract,” remarked ShayLe Stewart, DTN livestock analyst, in her closing comments today. “It’s disappointing to see the bearish movement pulling on the April contract, as just last week the contract was trading for $126.”
Cash cattle trade was light at 2,036 head. Live steers traded at $114.05 and dressed steers at $181. A total of 17,500 head of formula cattle averaging 890 lbs. sold for $183.93.
“If there’s anything that’s going to help this week’s cash cattle market, it’s going to be packers’ sheer desire to get cattle processed in order to receive this week’s stronger boxed beef prices, and feedlots’ unwavering spirit, which is tired of cash cattle trading at these minimal prices,” Stewart said.
Boxed beef prices were slightly higher, with the Choice cutout up 31 cents to $240.29 and the Select cutout up 55 cents to $230.54 on 132 loads.
Slaughter numbers were able to pick right back up, with today’s slaughter estimated at 122,000 head—back to the normal pace.
Feeder cattle
Feeder cattle contracts lost about three quarters each, with the March contract down 75 cents to $138.57 and the April contract down 67 cents to $142.60. The corn contract continues to grow, gaining a couple pennies to $5.53. The latest CME Feeder Cattle Index was reported down 73 cents to $140.39.
“Regardless of how this week’s futures market trades for the feeder cattle contracts, cattle buyers are not used to having to sit an entire week out of the market and they are buying up calves with vengeance,” Stewart commented.
Iowa: Russell Livestock in Russell sold 5,114 head. Compared to two weeks prior, steer calves 450-550 lbs. were steady to $2 higher; 550-800 lbs. sold $7-10 higher; and eight-weights sold $1-3 higher. Heifer calves 450-550 lbs. were steady to $9 higher; 550-800 lbs. sold $4-9 higher. Benchmark steers averaging 771 lbs. sold between $135.50-149.35.
South Dakota: Sioux Falls Regional Cattle Auction in Sioux Falls sold 5,685 head Monday. Compared to the week prior, feeder steers and heifers sold with definite higher undertones. Due to intense frigid temperatures the week prior, there were several cancellations that rolled over to last week, making receipts much larger. Demand for the offering of cattle was very good. Benchmark steers averaging 772 lbs. sold between $140-149. — Anna Miller, WLJ editor
