Tuesday markets
USDA released its latest WASDE (World Agricultural Supply and Demand Estimates) report today, which shared that beef production for 2021 was increased by 40 million pounds. Thankfully, the report didn’t cause much impact to today’s futures contracts, which were steadily higher.
Live cattle were up slightly, with the April contract up 30 cents to $119.65 and the June contract up 50 cents, also to $119.65.
“Hopefully the futures’ slightly stronger tone will trickle into the cash cattle market and help feedlots move this week’s market past $114,” ShayLe Stewart, DTN livestock analyst, commented in her midday report.
“If feedlots are going to be able to do so, they will need full backing by the futures market all throughout the week.”
The brunt of the week’s cash trade isn’t expected to develop until tomorrow or even later in the week. Today, 9,879 head traded on the negotiated cash market, selling between $113-114. Dressed steers sold for $177. On the formula side, a total of 16,700 head averaging 851 lbs. sold for $186.65.
Boxed beef prices were mixed, with the Choice cutout losing $2.05 to $229.03 and the Select cutout gaining 67 cents to $233.80 on 158 loads.
Slaughter for the day is expected to hit 121,000 head, a few thousand head short of last week and last year. So far this week, slaughter has totaled 242,000 head, compared to last year’s 247,000 head.
Feeder cattle
Feeder cattle contracts were also higher today. The March contract was up $1.80 to $137.15 and the April contract was up $2.40 to $142.07. The CME Feeder Cattle Index was up 10 cents to $134.02. March corn lost 3 cents to settle at $5.62.
“Thankfully, the market isn’t going to run into any resistance pressure for quite some time,” Stewart said. “So, the market really needs the momentum in the cash cattle market to build so feedlots reap some profit margin and want to go procure calves and feeders to fill their lots.”
New Mexico: Roswell Livestock Auction in Roswell sold 1,479 head Wednesday. Compared to the week prior, steer calves and feeders sold $2-3 higher. Feeder heifers and calves sold unevenly steady, except 650-700 lbs. sold $4 higher. Benchmark steers averaging 735 lbs. sold between $124.50-138.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 4,683 head Monday. Compared to the prior sale, feeder steers sold steady to $3 lower, except 700-850 lbs. sold steady to $2 higher; heifers steady to $3 lower, with 500 lbs. and under selling with lower undertones in a light test. Benchmark steers averaging 725 sold between $140.50-152.25. — Anna Miller, WLJ editor
