Thursday markets
Cattle futures closed mixed as traders await direction from cash trade.
“It’s a slow, tedious trade today. Futures are chopping in a tight, two-sided trading range, the most active April was unable to make a new high for the move, nor fill the gap underneath it left on Tuesday,” Cassie Fish, market analyst, wrote in The Beef. “In the country, it is almost deafeningly quiet with no bids reported.”
Live cattle futures closed modestly higher, with the February and April contracts 90 cents higher to close at $247.50 and $243.42, respectively.
“It would appear as though the nearby contracts are trading higher, although no trade has developed yet in the fed cash cattle market, as traders know that supplies of market-ready cattle are going to be thin through the first quarter and potentially partway through the second quarter, which may be part of the reason why the February through June contracts are higher,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was unavailable “due to plant data submission issues,” USDA reported.
Today’s slaughter is estimated to be 112,000 head, 3,000 head below a week earlier.
Actual slaughter for the week ending Feb. 7 was 538,907 head. The average steer dressed weight was 981 lbs., the same as the prior week.
Final boxed beef prices were also affected by the submission problems, but at midday, Stewart stated that Choice was up $1.30 to $365.10 and Select was up 5 cents to $360.68.
The pre-report estimates for Friday’s Cattle on Feed report show that feedlots with 1,000 head or greater will be 98.5% for cattle on feed in February. Placements in January are estimated to be 96.7%, and marketings for January are predicted at 87%.
Feeder cattle
Feeder cattle futures closed slightly lower, with the March contract down 30 cents to $370.27 and the April contract 35 cents lower to $367.65.
The CME Feeder Cattle Index was down 5 cents to $376.02.
Corn futures closed lower, with the March contract down a penny to $4.25 and the May contract down a fraction to $4.36.
Kansas: Winter Livestock in Dodge City sold 2,432 head on Wednesday. Compared to the last auction, steers over 650 lbs. sold steady to $10 higher and heifers over 650 lbs. sold steady to $8 higher. There were not enough steer and heifer calves sold for a market test. Benchmark steers averaging 774 lbs. sold between $378.50-396, averaging $387.06.
Nebraska: Bassett Livestock in Bassett sold 5,670 head on Wednesday. Compared to the last auction, steers 550-750 lbs. traded steady to $6 higher and heifers 550-600 lbs. sold sharply higher. Benchmark steers averaging 722 lbs. sold between $414.50-430.50, averaging $423.
New Mexico: Clovis Livestock in Clovis sold 1,581 head on Thursday. Compared to the previous auction, steer calves sold $5-15 higher, with instances of sharply higher, and steer yearlings were $7-14 higher. Heifer calves 400-450 lbs. sold $6 lower, while 450-600 lbs. Were higher. Feeder heifers sold steady to $10 higher. Benchmark steers averaging 782 lbs. sold between $356-362, averaging $359.46.
Oklahoma: OKC West in El Reno sold 6,106 head on Wednesday. Compared to the last auction, Feeder steers sold $4-8 higher, and feeder heifers traded $10-15 higher. Steer calves sold $3-6 higher, and heifer calves traded $5-10 higher. Benchmark steers averaging 768 lbs. sold between $372-390, averaging $380.88. — Charles Wallace, WLJ contributing editor
