Thursday markets
USDA’s release today of the annual Prospective Plantings and quarterly Grain Stocks reports sent corn prices higher, putting pressure on the cattle complex.
The Prospective Plantings report by USDA’s National Agricultural Statistics Service projects the corn planted area for all purposes in 2022 to be 89.5 million acres, down 4 percent or 3.87 million acres from last year. Soybean planted area for 2022 is estimated at a record 91 million acres, up 4 percent from last year.
Live cattle closed lower, with the April contract down 80 cents to $139.37 and the June contract down 87 cents to $137.12.
“June live cattle is starting to take on more selling pressure as the anticipation of the seasonal decline in fed cattle prices grows,” Cassie Fish, market analyst for The Beef, wrote. “June has struggled against the 40-day moving average and failed again, with today’s low holding the 10-day moving average.”
Cash trade was again sizable, with 28,118 head selling between $138-143.50, averaging $140.82. Dressed steers sold between $221-228 and averaged $222.38. On the formula side, 40,500 head averaging 890 lbs. sold for $223.96.
The Fed Cattle Exchange Auction offered 2,223 head, which went unsold, as they did not meet the reserve of $138.50-144. Opening prices were $137, and high bids were $138.
Slaughter for the day is projected to be 121,000 head, a thousand below last week.
Boxed beef prices were higher on 96 loads, with the Choice cutout up $1.35 to $268.39 and the Select cutout up $4.88 to $262.34.
USDA’s Weekly Export report for the March 18-24 period showed net sales of 23,000 metric tons (mt), down 17 percent from the previous week and 7 percent from the prior four-week average. Exports of 20,400 mt were down 51 percent from the previous week and 11 percent from the prior four-week average. The destinations were primarily South Korea (6,500 mt), Japan (5,200 mt), China (3,100 mt), Taiwan (1,600 mt) and Mexico (900 mt).
Feeder cattle
Feeder cattle were lower due to higher corn futures. The March contract lost 7 cents to $155.90 on the last trading day. The April contract was down $2.27 to $161.40, and the May contract was down $2.35 to $166.55. The CME Feeder Cattle Index was up 35 cents to $155.76.
“The USDA released its Planting Intentions report this morning which has boosted corn futures and correspondingly pressured feeder cattle futures today,” Fish wrote. “October feeders are $20 premium to April feeders as the expectation of fewer feeders in the fall is reflected, again promising better days for ranchers. Feeder futures too topped in February along with live cattle futures. And the question remains if and when those February highs will be challenged again in 2022.”
Corn closed higher, with the May contract up 10 cents to $7.48 and the July contract up 13 cents to $7.33.
New Mexico: Clovis Livestock in Clovis sold 1,194 head Wednesday. Compared to the previous auction, steer and heifer calves sold $2-5 higher. Yearling steers and heifers were steady. Benchmark steers averaging 779 lbs. sold between $147-150.50, averaging $149.66.
Oklahoma: OKC West in El Reno sold 6,772 head Wednesday. Compared to the last auction, feeder steers sold $1-4 higher. Feeder heifers traded $3-5 higher. Steer and heifer calves sold $8-12 higher, except for grazing cattle over 600 lbs., which sold up to as much as $15 higher. Benchmark steers averaging 726 lbs. sold between $161-176 and averaged $169.
South Dakota: Hub City Livestock in Aberdeen sold 5,011 head Wednesday. Compared to the previous auction, steers 600-650 lbs. sold $4-5 higher, 651-850 lbs. and 901-950 lbs. were mainly steady with up to $2 higher, and 851-900 lbs. traded steady to $4 higher. Heifers 500-600 lbs. sold $4-6 higher, 601-650 lbs. were not well compared and 651-850 lbs. were mostly steady. Benchmark steers averaging 733 lbs. sold between $164-176, averaging $169.58.
Wyoming: Torrington Livestock in Torrington sold 3,853 head on Wednesday. Compared to the previous auction, steer calves traded mostly steady under 550 lbs. Steer calves over 550 lbs. traded $1-2 higher. Heifer calves traded $3-5 higher. Benchmark steers averaging 715 lbs. sold between $164-175 and averaged $169.84. — Charles Wallace, WLJ editor
