Friday markets
USDA released its latest Cattle on Feed Report, which showed the impacts of February’s winter storm. Surprisingly, the report was not bearish in placement numbers. Placements and marketings as of March 1 were 2 percent less than 2020. Cattle on feed were 2 percent higher than last year.
“But, truthfully, given the tight financials that feedlots are operating under and the winter storm that devastated nearly the entire country in February, I’m surprised that placements were even that high,” remarked DTN Livestock Analyst ShayLe Stewart.
“Sale barns throughout the Southern Plains were shut down for a week—some even two—as transportation, power and the sheer amount of snow that needed to be cleared from their facilities was a catastrophic matter.”
She noted that some people may be concerned the total number of cattle and calves is 2 percent higher than year-ago levels, but beef demand is robust enough that moving cattle through the system should not be an issue.
Live cattle were in the red today, with the April contract down 17 cents to $118.40 and June down 97 cents to $118.67.
There was some cash cattle movement today, with lots securing $114-114.50. Dressed steers sold between $179-182. A total of 21,600 head of formula cattle averaging 852 lbs. sold for $182.49.
Boxed beef prices were higher on 108 loads. The Choice cutout was up $1.38 to $229.99 and the Select cutout was $1.84 higher to $219.95.
Total slaughter was down about 7,000 head to 106,000 with a Nebraska plant down for maintenance. Tomorrow’s slaughter is projected at 65,000 head. To date this week, slaughter totaled 559,000 head compared to last week’s 594,000 head.
Feeder cattle
Feeder cattle contracts were also lower today. The March contract was down 85 cents to $134.67 and the April contract was down $2 to $139.42. The CME Feeder Cattle Index was down a quarter to $134.03. March corn was up 11 cents to $5.57.
“With the weaker tone transpiring throughout the live cattle contracts, the feeder cattle contracts will most likely continue to follow suit,” Stewart said. “But that doesn’t mean feeder cattle sales throughout the countryside will be gravely affected rounding out the week.”
Kansas: Winter Livestock in Pratt sold 3,089 feeder cattle Thursday. Compared to the week prior, feeder steers 800-975 lbs. sold $1-2 higher; 600-800 lbs. sold steady. Steer calves 375-600 lbs. sold $6-8 higher. Feeder heifers 700-950 lbs. sold $2-3 higher; 500-700 lbs. sold steady. Heifer calves 300-500 lbs. sold $2-5 higher. Benchmark steers averaging 760 lbs. sold for $144.25.
Nebraska: Ogallala Livestock in Ogallala sold 3,475 head Thursday. There was no comparison due to no feeder sale last week. Benchmark steers averaging 770 lbs. sold between $139-147.50. — Anna Miller, WLJ managing editor
