Thursday markets
The cattle complex closed mixed, with feeders closing lower on higher corn futures.
Live cattle closed higher, with the April contract up 12 cents to $139.47 and the June contract up 40 cents to $135.92.
“Wednesday’s close came as an utter disappointment to the live cattle complex and while Thursday’s market is trending higher, it’s still unwilling to touch the 100-day moving average,” wrote ShayLe Stewart, DTN livestock analyst, in the midday comments.
Cash trade was active, with 35,154 head selling between $138-140, averaging $138.09. Dressed steers sold from $220-222 and averaged $221.55. USDA reports cash trade was moderate in the Southern Plains and Nebraska, with live trades mostly at $138.
On the formula side, 37,600 head averaging 894 lbs. traded at $224.18.
Boxed beef closed the day mixed on 148 loads, with the Choice cutout down $1.03 to $257.05 and the Select cutout up 41 cents to $250.68.
Slaughter for today is projected to be 125,000 head, a thousand above last week.
Actual slaughter for the week ending March 5 was 659,346 head. Steer carcass weights were 919 lbs.
USDA’s Weekly Export report for the March 4-10 period showed net sales of 19,700 metric tons (mt), down 28 percent from the previous week and 11 percent from the prior four-week average. Exports were 16,300 mt, up 2 percent from the previous week but unchanged from the four-week average. The destinations were primarily South Korea (4,600 mt), Japan (3,600 mt), China (2,700 mt), Taiwan (1,800 mt) and Canada (900 mt).
Feeder cattle
Feeder cattle closed lower, with the March contract down 70 cents to $156.55 and the April contract down $1.52 to $161.10. The CME Feeder Cattle Index was up $1.09 to $154.23.
“As the grain markets rally, thanks to the uncertainty of war and crude oil prices back over $100, the feeder cattle contracts have tucked their tails and retreated to lower prices again,” Stewart said. “These types of back-and-forth price jumps, which then create immense volatility and uncertainty in the market, are likely to continue until the war in Ukraine is finished. Until then, the market will likely continue to look for every little clue and crumb of insight and neglect to value its fundamentals.”
Corn closed higher, with the May contract up 24 cents to $7.54 and the July contract up 21 cents to $7.18.
Nebraska: Bassett Livestock in Bassett sold 3,060 head Wednesday. There was no recent test for an accurate comparison for steers or heifers compared to the previous auction. Benchmark steers averaging 711 lbs. sold between $179-188.25, averaging $183.98.
New Mexico: Clovis Livestock in Clovis sold 1,434 head Wednesday. Compared to the last auction, steer and heifers calves sold $5-10 higher. Yearling steers and heifers sold $2-6 higher. Benchmark steers averaging 767 lbs. sold between $151-152 and averaged $151.78.
Oklahoma: OKC West in El Reno sold 9,409 head Wednesday. Compared to the previous auction, feeder steers sold $5-8 higher, and feeder heifers traded $3-6 higher. Demand was good to very good for all classes of feeder cattle. Steer and heifer calves traded $6-8 higher. Benchmark steers averaging 774 lbs. sold between $151.50-162.75, averaging $157.10.
South Dakota: Hub City Livestock in Aberdeen sold 5,786 head Wednesday. Compared to the last auction, steers 600-700 lbs. sold unevenly steady, while 701-950 lbs. were steady to $3 higher. Heifers 600-650 lbs. were steady to $3 higher, and 651-800 lbs. sold mostly steady with instances of up to $2 lower on 700-750 lbs. Benchmark steers averaging 729 lbs. sold between $159-175, averaging $166.45. — Charles Wallace, WLJ editor
