Thursday markets
“The live cattle complex is continuing to chop sideways as the futures are unwilling to take on resistance at $148,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Thursday’s export report came as good news, but it wasn’t a strong enough push in sales to really send the contracts jolting higher.”
Live cattle closed mixed, with the February contract up 27 cents to $143.40 and the April contract down 15 cents to $146.77.
Cash trade was moderate, with 13,336 head selling between $142-143, averaging $142.27. Dressed steers sold between $224-226 and averaged $225.73. Negotiated cash trading has been slow on light demand in Nebraska, with a few live purchases from $142-142.50. In the Southern Plains and western Corn Belt, negotiated cash trading has been limited on light demand. In the Texas Panhandle, a few live purchases traded at $142. However, there were not enough purchases in any region for a full market trend.
On the formula side, 20,600 head averaging 871 lbs. sold for $221.71.
“The cash cattle market hasn’t seen any more interest, but if this week’s trade is going to amount to much, we still need to see some cattle sell, especially in the North,” Stewart said.
Boxed beef prices were lower on 161 loads, with the Choice cutout down 3 cents to $269.59 and the Select cutout down $1.23 to $264.85.
Slaughter for the day is projected to be 122,000 head, a thousand below last week.
Actual slaughter for the week ending Feb. 5 was 635,293 head. Steer carcass weights were 930 lbs., up 2 lbs. from the previous week.
“The best news for this past week is the slaughter volume. The nation’s beef plants killed 659,000 head—the largest slaughter of the year and 20,000 more than the previous week and 53,000 more than last year,” the Cattle Report wrote. “Some of the additional cattle are cows that continue to exceed prior year by 10 percent despite higher prices. Liquidation has not ended.”
USDA’s Weekly Export report for the Feb. 4 to Feb. 10 period showed net sales of 23,000 metric tons (mt) for 2022, up 18 percent from the previous week and 38 percent from the prior four-week average. Exports were 16,500 mt, up 13 percent from the previous week and 10 percent from the prior four-week average. The destinations were primarily to South Korea (4,900 mt), Japan (4,300 mt), China (2,400 mt), Taiwan (1,400 mt) and Mexico (1,200 mt).
Feeder cattle
Feeder cattle closed the day lower, with the March contract down $1.25 to $166.20 and the April contract down $1.02 to $171.15. The CME Feeder Cattle Index was down 45 cents to $162.14.
“With the grain complex unable to level out due to the Ukraine/Russia circumstances, the feeder cattle complex will continue to dip-dodge accordingly to the grain market’s developments as feed prices are so high and feeders have to be extremely cautious with their cost of gains,” Stewart said.
Corn contracts closed higher, with the March and May contracts up 3 cents a bushel to $6.50 and $6.49, respectively.
Kansas: Winter Livestock in Dodge City sold 3,662 head Wednesday. Compared to the previous auction, feeder steers 700-950 lbs. sold steady to $2 higher. Steer calves 400-700 lbs. sold $10 higher. Feeder heifers 800-950 lbs. sold steady to $2 lower. Heifers 400-800 lbs. sold $3-7 higher, with the most advance on heifers from 400-700 lbs. Benchmark steers averaging 771 lbs. sold between $157-165.50, averaging $161.62.
Nebraska: Bassett Livestock in Bassett sold 3,135 head Wednesday. Compared to the previous auction, there were a limited number of comparable offerings, with 750 lb. steers trading $7 lower. Heifer offerings 650-700 lbs. traded steady, and 600 lb. heifers sold $4 higher. Benchmark steers averaging 769 lbs. sold between $165.50-171 and averaged $168.64.
New Mexico: Clovis Livestock in Clovis sold 2,319 head Wednesday. Compared to the last auction, feeder steers and heifers sold steady to $3 higher. Benchmark steers averaging 792 lbs. sold between $153.50-156.25, averaging $155.92.
Oklahoma: OKC West in El Reno sold 13,193 head Wednesday. Compared to the last auction, feeder steers and heifers traded steady to $2 lower. Steer and heifer calves sold $7-10 higher. Benchmark steers averaging 783 lbs. sold between $160-164 and averaged $160.78.
South Dakota: Hub City Livestock in Aberdeen sold 8,150 head Wednesday. Compared to the previous auction, steers 600-900 lbs. were steady. Heifers 550-650 lbs. sold $2-5 higher, while 651-800 lbs. were mostly steady. Benchmark steers averaging 773 lbs. sold between $166-178.75, averaging $173.59. — Charles Wallace, WLJ editor
