Thursday markets
Futures sank lower today, even amid Thursday’s export report detailing a marketing year high.
Live cattle futures dropped lower today, with the June contract down $1.92 to $131.65 and the August contract down $1.87 to $132.77.
“The market was blessed with a marketing year high in Thursday’s export report, but unfortunately that hasn’t helped keep the market from trading in the red,” said ShayLe Stewart, DTN livestock analyst, in her midday comments. “The cash cattle market hasn’t added any support either, as it’s looking like the bulk of this week’s business is done.”
There was some cash trade today, with 5,913 head sold. Live steers sold from $138-146, averaging $144.27. Dressed steers sold from $227-230, averaging $227.43. Cash trade through the week so far is estimated at about 77,000 head.
On the formula side, a total of 24,000 head averaging 886 lbs. sold for an average of $233.10.
Beef net exports totaled 28,400 metric tons (mt) for 2022—a marketing year high—and were up 95 percent from the previous week and from the prior four-week average, Stewart said. The three largest buyers were South Korea (12,000 mt), Japan (7,200 mt) and Mexico (3,600 mt).
Slaughter through Thursday is estimated at 495,000 head, compared to last week’s number of 487,000 head. Actual total slaughter for the last week of April was recorded at 646,636 head.
“The entire industry has benefited from record beef demand,” wrote Cassie Fish, market analyst, in The Beef. “Now that demand is backing off, the market is a bit in uncharted fundamental territory because daily fed cattle slaughter falls short of pre-COVID levels, and the industry must run more Saturdays to keep up.”
Boxed beef prices were up a couple of dollars on 137 loads. The Choice cutout gained $2.12 to close at $257.20, and the Select cutout gained $2.18 to close at $244.36.
Feeder cattle
Feeder cattle futures were also down today. The May contract lost $1.27 to close at $156.87, and the August contract lost $3.47 to close at $166.52. The CME Feeder Cattle Index gained 37 cents to close at $156.61.
Corn futures were higher, with the May contract up 11 cents to $8.13 and the July contract up 3 cents to $7.91.
“As the market comes close to nearing long-term support at $168, feeders know they’ll be in the driver’s seat as supply sits in their favor this year, But with the rising cost of all inputs—the market isn’t given an easy row to hoe,” Stewart said.
Oklahoma: OKC West in El Reno sold 8,942 head on Wednesday. Compared to a week earlier, feeder steers and heifers sold steady to $2 lower. Demand for feeder cattle was moderate to good. Benchmark steers averaging 770 lbs. sold between $157-159, averaging $157.15. — Anna Miller, WLJ managing editor
