Thursday markets
Cattle markets were able to recover slightly from a previously disappointing week. While not many cash cattle sold in the earlier part of the week, Thursday gained momentum with 13,820 head selling between $103-106. Purchases in the South held steady at $108. Dressed purchases moved from $158-163 Thursday, averaging around $160.73.
Futures contracts blossomed Thursday afternoon, with the October live cattle contract up 43 cents to $106.28, and the December and February contracts gaining $3.30 and $2.68 to $107.98 and $110.38, respectively.
Slaughter through Thursday was projected at 464,000 head, about 15,000 head behind the week prior but on trend with last year. Thursday’s slaughter was estimated at 114,000 head, several thousand behind as a few plants in the Southern Plains were unable to open due to severe weather. The plants were expected to pick up slaughter on the weekend to make up for the lost numbers.
On 157 loads, the Choice cutout traded $1.38 higher to $207.17 and the Select cutout traded $1.65 higher to $191.23—about the same levels as the week prior.
“As boxed beef prices print higher and nearby contracts scale anywhere from $2-3 higher—feedlots are soaking up the market’s momentum and cherishing the fact that they didn’t sell out early in the week and miss the opportunity to trade cash cattle to their fullest potential,” remarked DTN Livestock Analyst ShayLe Stewart in her afternoon market comments.
Feeder cattle
The corn contract was what everyone was watching, and the December contract ultimately fell below $4 to $3.98 Thursday afternoon after peaking for the week at $4.17 on Monday.
The October feeder contract was up $1.28 to $136.45, November up $1.83 to $135.73, and January up $1.40 to $131.35 on Thursday afternoon. Thursday’s CME Feeder Cattle Index was up $1.02 to $134.34.
Winter Livestock in Dodge City, KS, sold 456 head of feeder cattle Wednesday. There were low receipts due to weather. There were not enough steers and heifers for a market test, however a lower market was noted. Slaughter cows sold unevenly steady. Slaughter bulls sold $2-3 higher. A group of steers averaging 724 lbs. sold between $124-126.75, averaging $125.33.
Hub City Livestock Auction in Aberdeen, SD, sold 4,206 head yesterday. The best test was on yearling steers 850-950 lbs., selling mostly steady and 1,050-1,100 lbs. selling $2-4 lower. Yearling heifers were not well compared and calves were too lightly tested the week prior for an accurate trend. Steers weighing 613 lbs. sold between $141.50-150, averaging $147.92. — Anna Miller, WLJ editor
