Thursday markets
Cattle markets were mixed today with modest trading as the complex is indecisive.
“The live cattle contracts are soaking up the modest support that traders are cautiously extending, but the market has thus far been skeptical about trading fully higher,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle were up today, with the June contact higher $1.05 to $115.47 and the August contract up 75 cents to $118.47.
Cash trade was moderate on Thursday, with 4,946 head selling between $117-119 and averaging $118.31. Dressed steers sold at $188. On the formula side, 20,000 head averaging 850 lbs. sold for $193.30.
“One would think that the stellar beef demand that the market’s been shown would drive fat cattle prices and incentivize packers to want to kill as many cattle as possible while demand is thriving—but, unfortunately, that’s not the case,” Stewart commented. “With packers having a large percentage of their cattle already bought for this time through forward contracts, their need to dive into the cash market is minimal.”
Boxed beef prices continued their upward trend, with the Choice cutout higher $1.59 to $306.37 and the Select cutout up $3.18 to $289.36 on 100 loads.
Slaughter through Thursday totaled an estimated 470,000 head, slightly below last week’s 477,000 head. The USDA reported actual slaughter numbers for the week ending April 24 were 665,029 head.
Feeder Cattle
Feeder cattle traded lower, with the May contract down $1 trading at $130.47 and the August contract was lower $1.82 on Thursday, closing at $143.40.
“It’s utterly painful to look at the cattle market from a cattle feeder’s perspective—all inputs are higher, fat cattle are selling for shameful prices, and yet, slaughter speeds are running at mediocre levels and boxed beef prices are sharply higher,” ShayLe Stewart, DTN livestock analyst wrote in the Thursday midday comments. “There’s money floating around throughout the market, but it’s not working its way down to the cattle feeders or cow-calf producers.”
Corn markets continued their surge with the May contract higher 6 cents, trading at $7.59 a bushel. The July contract also topped the $7 mark, trading 10 cents higher, closing at $7.18 a bushel.
Kansas: Winter Livestock in Dodge City sold 2.728 head on Wednesday. Compared to the last auction, feeder steers 600-950 lbs. sold $2-5 lower. There was no recent comparison on steer calves 400-600 lbs. however, a higher trend was noted. Feeder heifers 550-975 lbs. sold $3-7 lower with no recent comparison on heifer calves 375-500 lbs., however, a lower trend was noted. Benchmark steers averaging 743 lbs. sold for $144.
South Dakota: Hub City Livestock in Aberdeen sold 5,500 head on Wednesday. Compared to the previous auction, steers 800-950 lbs. Mainly were steady, 951-1000 lbs. sold steady to $3 lower. Heifers 900-950 lbs. were steady to $2 higher. Benchmark steers averaging 829 lbs. sold between $130.50-142.
Wyoming: Torrington Livestock in Torrington sold 2,274 head on Wednesday. Compared to the previous sale, steer and heifer calves on load lots and reputation kind traded steady with few instances of $3 higher. Benchmark steers averaging 805 lbs. sold between $135-143. —Charles Wallace, WLJ editor
