Friday markets
The cattle complex closed the week higher, hitting another round of contract highs.
Live cattle futures were slightly higher, with the April contract up 75 cents to $214.25 and the June contract up 25 cents to $208.25.
“The live cattle complex has been rocked back on its heels as traders try to patiently wait for this week’s cash cattle trade to develop — but their patience is running thin,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was moderate, with 8,535 head sold. Live steers sold for $212-218, and dressed steers sold between $335-342.
“Bids have surfaced in Kansas at $210-212, but with feedlot managers firm in their asking prices of $214 to $215 in the South and $340-plus in the North—packers are going to need to up their ante if they’re going to get cattle bought this week,” Stewart wrote.
Today’s slaughter is estimated to be 82,000 head, 7,000 head below a week earlier. Saturday’s slaughter is projected to be 7,000 head, bringing the predicted total to 548,000 head.
“The balance between fed supplies and reduced processing volumes seems to have found a level,” the folks at the Cattle Report wrote. “That level is far short of 600,000 head and is likely to place weeks of 600 thousand head in the distant past. Even if demand improved, packers would likely give up all of the improved margin gained from higher box prices to cattle owners as they struggle to contain input costs.”
Boxed beef prices were higher on 96 loads, with the Choice cutout up $2.78 to $336.48 and the Select cutout up $3.76 to $320.11.
Feeder cattle
Feeder cattle futures closed triple digits higher, with the May contract up $1.45 to $290.52 and the August contract up $1.60 to $294.30.
The CME Feeder Cattle Index was down $1.73 to $287.24.
Nearby corn futures closed higher, with the May and July contracts up a penny to $4.78 and $4.85, respectively. Deferred contracts were lower.
Kansas: Winter Livestock in Pratt sold 3,354 head on Thursday. Compared to the last auction, feeder steers 600-975 lbs. sold unevenly steady, with a lower undertone, but thin-fleshed and fancy steers sold up to $10 higher. Steers 1,000-1,150 lbs. sold $3-8 higher. Feeder heifers 600-900 lbs. sold $6-10 higher. There were not enough steers and heifers under 600 lbs. for a market test. Benchmark steers averaging 793 lbs. sold for $281-286.50, averaging $284.57.
Nebraska: Valentine Livestock in Valentine sold 2,855 head on Thursday. There was no recent test for an accurate comparison of steers and heifers. Benchmark steers averaging 775 lbs. sold for $313.50-317.50, averaging $316.15.
Texas: Cattlemen’s Livestock in Dalhart sold 938 head on Thursday. There were few comparable sales among the calves and feeders to set a trend, but a higher undertone was noted. Benchmark steers averaging 728 lbs. sold for $300-314, averaging $310.39.
Washington: Toppenish Livestock in Toppenish sold 1,735 head on Thursday. Compared to the last auction, stocker and feeder cattle were steady. A group of steers averaging 737 lbs. sold between $255-274, averaging $266.18. — Charles Wallace, WLJ contributing editor
