Thursday markets
The market closed lower, possibly due to the hike in interest rates, and the Dow Jones experienced a significant sell-off, closing down 1,063 points.
“With inflation at a 40-year high, the Fed raised interest rates by 50 basis points,” the Cattle Report wrote. “The usual change of 25 basis points is being doubled to combat rising prices caused by uncontrolled government spending. This adds another burden on the livestock industry already struggling with runaway feed costs.”
Live cattle closed lower, with the June contract down $1.05 to $133.77 and the August contract also down $1.05 to $136.02.
“The live cattle contracts are opting to trade with the same tone as the feeder cattle market, which is lower,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “As the market goes back and forth between support and resistance levels, it’s not surprising to see trade drift lower as the cash market saw steady trade this past week.”
Cash trade was light, with 3,762 head selling between $141-146, averaging $145.30. On the formula side, 34,700 head averaging 900 lbs. sold for $231.34.
“Throughout the week, Southern live cattle have traded mostly at $140 and Northern dressed cattle are $232, both of which are steady with last week’s business,” Stewart wrote. “Asking prices for cattle left on showlists are around $142 in the South and $234 in the North.”
Slaughter for the day is projected to be 124,000 head, a thousand above last week.
Actual slaughter for the week ending April 23 was 664,070 head. Steer carcass weights were 906 lbs.
Boxed beef closed lower on 159 loads, with the Choice cutout down $4.56 to $255.18 and the Select cutout down $1.87 to $245.81.
USDA’s Weekly Export report for the April 22-28 period showed net sales of 14,600 metric tons (mt), up 28 percent from the previous week and 1 percent from the prior four-week average. Exports were 20,300 mt, up 16 percent from the previous week and 7 percent from the prior four-week average. The destinations were primarily Japan (6,600 mt), South Korea (5,000 mt), China (3,200 mt), Taiwan (1,300 mt) and Mexico (1,100 mt).
Feeder cattle
Feeder cattle closed lower, with the May contract down $1.92 to $160.32 and the August contract down $1.82 to $174.37. The CME Feeder Cattle Index was down 16 cents to $155.59.
Corn contracts were higher despite a lower export report, with the May contract up 5 cents to $8.03 and the July contract up 3 cents to $7.97 a bushel.
New Mexico: Clovis Livestock in Clovis sold 1,313 head Wednesday. Compared to the previous auction, yearling steers and heifers sold $2-3 higher. Calves were not well tested this week for an adequate trend. Benchmark steers averaging 776 lbs. sold between $155.50-155.60, averaging $155.59.
Oklahoma: OKC West in El Reno sold 7,401 head Wednesday. Compared to the last auction, feeder steers and heifers sold $1-3 higher. Demand was moderate to good for feeders. Steer and heifer calves that were long weaned and in thin condition suitable for grazing sold $2-4 higher. Benchmark steers averaging 770 lbs. sold between $153-158.75 and averaged $155.59. — Charles Wallace, WLJ editor
