Thursday markets
Live cattle regained a smidgen after yesterday’s bleeding, but feeder cattle could not muster any support as corn closed relatively unchanged.
Live cattle closed slightly higher, with the June contract up 17 cents to $131.50 and the August contract up 32 cents to $132.02.
“It may be tough to find traders willing to buy into the market aggressively over the course of the next few weeks as there are quite a few cattle expected to be available to the market,” Robin Schmahl, DTN contributing analyst, said in the Early Word Livestock Comments. “This, along with the upcoming Cattle on Feed report to be released Friday, may leave the market floundering. However, if the weakness remains into the report, we could see a rebound in prices no matter what the report says as it may be overdone to the downside. Estimates for the report are for on feed at 101.4 percent, placements at 96.1 percent and marketings at 98 percent.”
It’s looking like the bulk of cash trade is done for the week, as 3,125 head sold between $138-147. Dressed steers sold between $225-228, averaging $226.84.
“Most sales this week were posted at $142 live in the North with dressed sales at $225-227, but again some sales reached $228 on Wednesday as the markets fell. In the South, cattle traded in Kansas and Texas at $138 with a few clean up cattle lower mid-week. Most prices were $2 weaker than last week,” the Cattle Report wrote.
On the formula side, 26,700 head averaging 864 lbs. sold for $230.06.
Slaughter for the day is projected to be 125,000 head, a thousand above last week.
Actual slaughter for the week ending April 30 was 646,636 head. Steer carcass weights were 901 lbs.
Boxed beef prices closed higher on 86 loads, with the Choice cutout up $1.23 to $261.70 and the Select cutout up 4 cents to $246.06.
USDA’s Weekly Export report for the May 6-12 period showed net sales of 23,300 metric tons (mt), down 18 percent from the previous week but up 35 percent from the prior four-week average. Exports were 19,800 mt, unchanged from the previous week but up 1 percent from the prior four-week average. The destinations were primarily South Korea (6,100 mt), Japan (5,300 mt), China (3,100 mt), Mexico (1,400 mt) and Taiwan (1,000 mt).
“With mixed tones coming from U.S. consumers thanks to inflation and a looming recession, the market is clinging to its export market as it’s helping move high quality beef,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Feeder cattle
Feeder cattle could not muster any support despite corn trading relatively unchanged. The May contract was down $1.72 to $154.12, and the August contract was down 60 cents to $165.20. The CME Feeder Cattle Index was down $1.59 to $153.46.
Corn closed mixed, with the July contract up a penny to $7.83 and the September contract down 2 cents to $7.50.
“If the grain complex grows stronger, it’s likely that feeders end up trading fully lower as the support that’s coming from the live cattle market isn’t strong enough to wane off the crippling effects of higher feed prices, and the live cattle market itself is subject to trading lower as the week has felt pressure both technically and fundamentally through weaker cash prices,” Stewart wrote.
New Mexico: Clovis Livestock in Clovis sold 1,751 head Wednesday. Compared to the last auction, feeder steers and heifers sold steady to $3 higher. Trade was fairly active on moderate to good demand. Benchmark steers averaging 718 lbs. sold between $150-153, averaging $151.67.
Oklahoma: OKC West in El Reno sold 10,398 head Wednesday. Compared to the previous auction, feeder steers traded $3-5 lower. Feeder heifers sold $2-4 lower. Steer and heifer calves that were long weaned and suitable for grazing sold mostly steady. Benchmark steers averaging 774 lbs. sold between $150-154 and averaged $152.13.
South Dakota: Hub City Livestock in Aberdeen sold 4,957 head Wednesday. Compared to the last auction, steers 850-900 lbs. were mostly steady, while 901-1,000 lbs. traded $3-5 lower. Heifers 800-950 lbs. sold mostly steady. Benchmark steers averaging 777 lbs. sold for $158.50. — Charles Wallace, WLJ editor
