Thursday markets
Fallout from the equities spilled over to the cattle complex, closing triple digits lower.
“CME cattle futures posted triple digit losses from the get-go, though have clawed back some of the early losses,” Cassie Fish, market analyst, wrote in The Beef. “When glancing at a chart, CME live cattle futures seem to be developing a sideways, or distribution pattern near their highs, this being the third week. This makes sense given the continued solid footing in cattle and beef fundamentals combined with plenty of outside market uncertainty.”
Live cattle futures closed lower, with the April contract down $2.32 to $208.05 and the June contract down $2.70 to $204.70.
Cash trade was active, with 10,684 head sold. Live steers sold for $212-213, and dressed steers sold between $335-345.
On the formula side, 35,600 head averaging 915 lbs. sold for an average of $335.58.
“There has been very little negotiated fed cattle trade this week and a few $208 bids surfaced in the South this morning that were passed,” Fish wrote. “This is viewed as friendly in the face of lower futures. Last week’s market averaged just over $209.”
Today’s slaughter is estimated to be 121,000 head, 2,000 head above a week earlier.
Actual slaughter for the week ending March 22 was 557,527 head. The average steer dressed weight was 950 lbs., 3 lbs. above the prior week.
Boxed beef prices were lower on 131 loads, with the Choice cutout down $1.53 to $338.37 and the Select cutout down 99 cents to $317.84.
Feeder cattle
Live cattle futures also closed lower, with the April contract down $3.47 to $285.40 and the May contract down $4.80 to $283.12.
The CME Feeder Cattle Index was up 25 cents to $291.27.
“The market has additional concerns about these newly instated tariffs will impact not only short-term trade and buying decisions, but also long-term market activity,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “The focus on overall economic health continues to be weighed heavily on overall cattle trade, which may have a longer-term impact on overall beef demand.”
Corn futures closed mixed, with the May and July contracts closing on both sides of a fraction to $4.57 and $4.65, respectively.
Kansas: Winter Livestock in Dodge City sold 2,524 head on Wednesday. Compared to the last auction, feeder steers and heifers over 600 lbs. sold $10 higher, with a softer undertone noted. Steers and heifers under 600 lbs. sold $20 higher, while reputation and fleshier calves had stronger undertones. Benchmark steers averaging 787 lbs. sold for $285-302.25, averaging $295.79.
Nebraska: Bassett Livestock in Bassett sold 4,816 head on Wednesday. Compared to the last auction two weeks ago, steers and heifers less than 800 lbs. sold $5-9 higher. Benchmark steers averaging 716 lbs. sold for $310-337.50, averaging $327.96.
New Mexico: Clovis Livestock in Clovis sold 1,300 head on Wednesday. Compared to the previous auction, feeder steers and heifers sold steady to $5 higher. Benchmark steers averaging 786 lbs. sold for $276-295, averaging $278.45.
Oklahoma: OKC West in El Reno sold 6,298 head on Wednesday. Compared to the previous auction, feeder steers sold $4-8 higher. Feeder heifers sold mostly steady, except under 700 lbs. traded $2-4 higher. Steer and heifer calves traded $5-10 higher. Benchmark steers averaging 783 lbs. sold for $293-312, averaging $297.27. — Charles Wallace, WLJ contributing editor
