Thursday markets
It was another day where most of the livestock complex was focused on war, fear and the unknown. Heading into Friday’s market, it’s likely the lower doggish tone will be kept through the week’s end.
Beef exports showed strong demand in Thursday’s report, as the data shared a new marketing year high. And boxed beef prices are starting to find some solid ground as they closed higher. But other than that, it was another day of lousy trade throughout the live cattle market. Futures closed lower, cash cattle traded lower and the market seemed to focus on two things only—war and fear.
April live cattle closed $1.67 lower at $135.90, June live cattle closed $1.50 lower at $132.45 and August live cattle closed $0.97 lower at $134.65. The cash cattle market saw a little more trade, all at steady prices with the week’s trend.
Thus far this week, live cattle in the South have sold mostly at $138 ($2 lower than last week), and Northern dressed cattle have sold at $220 ($4 lower than last week). Some more cleanup trade could develop Friday, but it’s likely the week’s business is mostly done with.
Thursday’s slaughter is estimated at 124,000 head—steady with a week ago and 4,000 head more than a year ago.
Beef net export sales of 27,500 metric tons (mt) for 2022—a marketing year high—were up 16 percent from the previous week and 36 percent from the prior four-week average. The three largest buyers were China (10,400 mt), Japan (6,400 mt) and South Korea (3,700 mt).
Thursday’s actual slaughter data shared that for the week ending Feb. 26, 2022, steer carcasses fell by 3 lbs. to average 918 lbs., and heifer carcasses averaged 853 lbs., which is 4 lbs. more than a week ago.
Boxed beef prices closed higher: Choice up $1.24 ($253.94) and Select up $2.58 ($247.37) with a movement of 106 loads.
Feeder cattle
The feeder cattle contracts closed significantly lower as the corn market rallied another 15 to 22 cents. With pressures continuing to mount from inputs, the contracts had no option but to trade lower, and buyers scattered from sales in the countryside as risk continues to be a volatile factor in the marketplace.
March feeders closed $2.40 lower at $151.65, April feeders closed $3.90 lower at $156.25 and May feeders closed $4.12 lower at $161.80.
At Winter Livestock’s Auction in Pratt, KS, compared to last week on a run of 5,500 head at the session’s midpoint, feeder heifers weighing 700-975 lbs. sold $4-5 lower. Heifer calves weighing 500-700 lbs. sold $10-12 lower. Steers weren’t well tested.
The CME Feeder Cattle Index for March 9, 2022, was down $0.83, $153.06. — ShayLe Stewart, DTN livestock analyst
