Friday markets
Markets were mixed today, although more positive than yesterday. Live cattle futures were higher, and if cash trade had waited until today to develop, perhaps the week’s cash prices could have been higher with encouragement from the futures.
“The market’s fundamentals throughout the live cattle sector haven’t improved, but traders are feeling a little antsy before heading into the weekend, and thankfully generously investing in live cattle contracts,” remarked ShayLe Stewart, DTN livestock analyst in her midday comments.
“It’s been a dismal day throughout the cash cattle market as packers aren’t overly interested in procuring cattle and know feedlots are willing to take lower prices.”
Live cattle contracts were higher, with the April contract up 47 cents to $119.02 and the June contract up $1.02 to $118.
Cash cattle trade was disappointing, with 9,775 head selling from $112-114. Dressed steers sold for $180. On the formula side, a total of 21,800 head averaging 860 lbs. sold for $184.51.
Boxed beef prices were lower, with the Choice cutout down $2.55 to $231.33 and the Select cutout down 83 cents to $220.85.
Cattle slaughter for the day was down slightly at 109,000 head—about 10,000 head less than usual. To date this week, slaughter has totaled 594,000 head. Tomorrow’s slaughter is estimated at 71,000 head.
Feeder cattle
With gains of over 15 cents bringing the March corn contract to $5.62, feeder cattle contracts were mixed. The March contract was down 50 cents to $134.60 and the April contract down 5 cents to $139.02. The latest CME Feeder Cattle Index was reported yesterday, down $1.10 to $136.07.
“With corn prices continuing to creep higher and higher, the demand for heavier feeder cattle isn’t much, but cattle that will make grass calves are met with strong demand as the warmer weather is reminding cattlemen that spring is coming,” Stewart said.
Oklahoma: OKC West Livestock Auction in El Reno, OK, sold 13,733 head Wednesday. Compared to last week’s limited offering, feeder steers sold steady to weak. Feeder heifers traded mostly $1-4 lower. Steer calves sold $3-5 higher. Heifer calves traded sharply higher with instances on lighter-weight heifers as much as $10 higher. Benchmark steers averaging 774 lbs. sold between $129-138. — Anna Miller, WLJ editor
