Thursday markets
“Despite plentiful fundamental support, livestock contracts are trading in a wide range, trying to absorb all market signals,” ShayLe Stewart, DTN livestock analyst, remarked in her Thursday midday comments.
Live cattle contracts saw some slight gains compared to the week prior, with the February contract at $116.45 and the April contract at $123.75 on Thursday.
Cash cattle markets struggled to develop all week, but finally found some volume Thursday, with 25,083 head selling between $111.50-114. Dressed steers sold at the $178-181 mark. The gap between negotiated dressed steers and formula cattle has been slowly closing, with a dollar or so difference between the two. Formula cattle have been selling at the high $170s-low $180s mark.
Boxed beef prices may have hit their peak and are dwindling downward. The Choice and Select cutouts lost several dollars throughout the week, and settled Thursday at $234.25 and $220.44, respectively.
As of Thursday, a total of 470,000 head had been slaughtered. This was a few thousand head below the week prior and the year prior. Cargill has scheduled maintenance on a few of their plants, so that may have an impact on slaughter numbers over the next few weeks.
Feeder cattle
Feeder cattle contract movement has been mostly dependent on the status of the corn contract, and March corn has continued to make small gains. As of Thursday, the corn contract was at $5.50, compared to the previous Friday’s $5.47. Feeder cattle contracts managed to find some momentum throughout the week, and closed Thursday with the March contract at $139.50 and the April contract at $142.67. Thursday’s CME Feeder Cattle Index was reported at $136.27, up from the week prior.
“Feeder cattle sales this past week have been mixed with heavier feeders selling modestly lower. But the lighter weight calves that will make grass cattle next spring continue to sell with strong demand,” Stewart said.
“After the large runs of feeders in January, a lot of feedlots are at or near their capacity and don’t want to have to buy the feeders that need to go straight into the feedlot.”
Colorado: Winter Livestock in La Junta sold 2,433 head Tuesday. Compared to the last sale, feeder steers under 400 lbs. sold steady; 400-550 lbs. sold $3-4 higher; 550-700 lbs. sold steady to $2 higher; and over 700 lbs. sold $2-3 lower. Feeder heifers under 500 lbs. sold steady; five-weights sold steady to $3 higher; over 600 lbs. sold $1-2 lower. Benchmark steers averaging 716 lbs. sold between $132.50-140. — Anna Miller, WLJ editor
