Friday Markets
Cattle contracts were all green today at the CME. April feds gained 45 cents to $119 and June gained 75 cents to close at $120.41. Cash fed trade was quiet today, mostly cleanup trade for the week. The weighted average was $113.17 live and $179.43 dressed. It’s been tough trading. The market has been stuck in the $114 range for six weeks. A total 81,000 head traded on the negotiated cash market. Formula trade had 17,800 head weighing 864 lbs., priced at $184.49.
Boxed beef prices were relatively steady with Choice going to $225.87 and Select at $220.27 on 134 loads. The Choice-Select spread has closed to $5.60. Spring grilling season is just around the corner and consumers will be ready to spend time grilling in the backyard. Over 85 percent of last week’s slaughter graded Choice and higher.
Cassie Fish in The Beefpointed out, “There is a winter storm coming this weekend, but it is expected to impact eastern Colorado and the far western part of Nebraska. Welcome rain will blanket Kansas, Oklahoma and Nebraska and parts of Texas.
“This week’s slaughter is still estimated between 658k and 660k head. Next week will be smaller with a plant down for a planned project two weekdays.
“Boxed beef prices will be looking for a bottom next week. Cash cattle prices next week will likely continue to trade sideways to sloppy since this week’s 81k head trade volume kept some cash selling feed yards from getting cleaned up. This has been a challenge for the past several weeks but is expected to improve in just a few weeks, especially in the north.”
Feeder cattle market are struggling to gain some ground. Auctions were active this week with lots of cattle on offer. Feeder cattle futures were all green with March feeders gaining $1.10 to $136.35 and June is up $195 to $143.22. We must point out that the deferred feeder cattle contracts are claiming new highs. The August contract was at $156.57 and September was $157.15. If you’re looking for some security on your summer grazing program here’s your chance.
New Mexico: Clovis Livestock Auction reported 2,377 head sold and steer calves under 600 lbs. unevenly steady, except 450-550 lbs. were $3 higher; 600-700 lbs. $5 lower; over 700 lbs. saw instances of $3 higher. Heifer calves under 600 lbs. were unevenly steady; over 600 lbs. were mostly $3 higher. Slaughter cows and bulls were $3 lower.
Montana: Billings Livestock Auction reported 4,354 head sold. Steers weighing less than 550 lbs. were too lightly tested either this week or last week to develop an accurate market trend, however lower undertones were noticed. Steers 550 lbs. and heavier sold steady to weak. Heifer calves weighing less than 700 lbs. sold generally steady, and heifers over 700 lbs. sold $2-$4 higher in a narrow comparison. Quality this week was average to attractive. Demand was mostly moderate to good for moderate to heavy offerings. Cattle continue to be in mostly light flesh and suitable to run on grass. Demand for heavier cattle was notably stronger this week than last, and mostly active with a large crowd on hand. Weigh-up cows sold on mostly moderate demand for light to moderate offerings. And bulls were $3 lower. — Pete Crow, WLJ publisher
