Thursday markets
“Yesterday’s pull-back has developed into a full-scale technical correction in CME cattle futures today,” wrote Cassie Fish, market analyst, in The Beef.
Live cattle futures closed sharply lower, with the April contract $2.30 lower to $250.30 and the June contract down $3.45 to $247.62.
Cash trade was moderate, with 12,951 head sold. Live steers sold for $246-248, and dressed steers sold between $388-392.
On the formula side, 26,200 head averaging 940 lbs. sold for an average of $392.26.
“Personally, I’m led to believe that with packers unable to get more than 40,000 head bought last week in the cash market, they’ll need to be more aggressive this week and feedlot managers may be able to push prices higher, or at least hold them steady,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Today’s slaughter is estimated to be 104,000 head, 1,000 head lower than last week.
Actual slaughter for the week ending April 6 was 527,826 head. The average steer dressed weight was 981 lbs., down 2 lbs. from the prior week.
Boxed beef prices were lower on 104 loads, with the Choice cutout down 41 cents to $381.57 and the Select cutout 10 cents lower to $378.48.
The pre-report estimates for Friday’s Cattle on Feed report show that feedlots with 1,000 head or greater will be 99.8% for cattle on feed in April. Placements in March are estimated to be 93.5%, and marketings for March are predicted at 93.7%.
Feeder cattle
Feeder cattle futures also closed lower, with the April contract 42 cents lower to $373.07 and the May contract down $3.85 to $367.10.
The CME Feeder Cattle Index was 44 cents higher to $375.46.
Corn futures closed lower, with the May and July contracts down 2 cents to $4.48 and $4.57, respectively.
Kansas: Winter Livestock in Dodge City sold 1,846 head on Wednesday. Compared to the last auction, yearling steers and heifers sold steady to $5 higher, while steer and heifer calves sold $10-20 higher. Benchmark steers averaging 703 lbs. sold for $400-414.50, averaging $409.64.
Oklahoma: OKC West in El Reno sold 7,923 head on Wednesday. Compared to the last auction, feeder steers over 800 lbs. sold unevenly steady, and under 800 lbs. were $5-15 higher. Feeder heifers over 750 lbs. sold unevenly steady, and under 750 lbs. were $5-10 higher. Steer calves over 500 lbs. sold $5-10 higher, and under 500 lbs. were steady. Heifer calves were $5-10 higher. Benchmark steers averaging 772 lbs. sold for $370-403, averaging $390.41.
South Dakota: Hub City Livestock in Aberdeen sold 7,101 head on Wednesday. Compared to the last auction, steers 700-749 lbs. and 900-949 lbs. sold $4-10 higher, while 800-899 lbs. and 950-999 lbs. were mostly steady. Heifers 700-749 lbs. were mostly steady, and 750-799 lbs. sold $6-9 higher. Benchmark steers averaging 773 lbs. sold for $383-406.50, averaging $396.89.
Wyoming: Torrington Livestock in Torrington sold 4,120 head on Wednesday. Compared to the last auction, feeder steers and heifers traded steady to $5 higher, with load lots trading up to $10 higher. Benchmark steers averaging 772 lbs. sold for $378-404, averaging $390.75. — Charles Wallace, WLJ contributing editor
