Thursday markets
Cattle futures closed lower amid profit-taking and market pressure.
Cassie Fish, market analyst for The Beef, said the previously sideways-to-higher cattle futures trend was decisively broken as futures plunged lower, with April live cattle contracts coming within 100 points of the February low and feeder cattle futures posting a new low for the month. Fish noted that the sell-off likely accelerated after key technical levels, including the 40-day moving average, were breached. According to Fish, the downturn appears tied to market nervousness over a potential strike by the union at the Greeley, CO, fed cattle plant, though she emphasized that, despite union registration events for strike pay this week, whether a strike will occur remains purely speculative.
Live cattle futures closed lower, with the February contract unchanged at $246, the April contract down $3.37 to $236.90 and the June contract $3.30 lower to close at $233.40.
Cash trade was active, with 16,222 head sold. Live steers sold between $242-244, and dressed steers sold for $382-384.
On the formula side, 20,400 head averaging 946 lbs. sold for an average of $395.17.
Today’s slaughter is estimated to be 103,000 head, 9,000 head lower than last week.
Actual slaughter for the week ending Feb. 14 was 543,582 head. The average steer dressed weight was 984 lbs., up 2 lbs. from the prior week.
Boxed beef prices were mixed on 85 loads, with the Choice cutout $1.34 lower to $377.89 and the Select cutout $3.72 higher to $370.79.
Feeder cattle
Feeder cattle futures also closed lower, with the March contract down $4.65 to $361.65 and the April contract $5.27 lower to $358.75.
The CME Feeder Cattle Index was $374.79.
Corn futures closed higher, with the March contract up 2 cents to $4.33 and the May contract a penny higher to $4.43.
Kansas: Winter Livestock in Dodge City sold 3,087 head on Wednesday. Compared to the last auction, steers over 600 lbs. sold steady, and under 600 lbs. were not well tested. Heifers over 650 lbs. sold steady to $10 higher, and 550-600 lbs. sold steady to $8 higher. Benchmark steers averaging 779 lbs. sold between $369.50-391, averaging $375.90.
Nebraska: Huss Livestock in Kearney sold 4,103 head on Wednesday. Compared to the last auction, steers over 600 lbs. sold steady to $5 higher and heifers over 550 lbs. sold steady to $10 higher. Benchmark steers averaging 766 lbs. sold between $388.50-411.75, averaging $401.16.
Oklahoma: OKC West in El Reno sold 10,248 head on Wednesday. Compared to the last auction, feeder steers sold $1-6 lower. Feeder heifers over 750 lbs. sold $4-9 lower, and under 750 lbs. traded steady to $5 higher. Steer calves over 500 lbs. sold $2-7 lower, and under 500 lbs. traded $8-12 higher. Heifer calves sold $1-7 higher. Benchmark steers averaging 780 lbs. sold between $369-392.50, averaging $375.12.
Wyoming: Torrington Livestock in Torrington sold 3,084 head on Wednesday. Compared to the last auction, feeder steers traded mostly steady on comparable trades. Feeder heifers also traded mostly steady, with the exception of a 5-weight grass-type heifers trading $9 higher. Benchmark steers averaging 768 lbs. sold between $395-403, averaging $398.58. — Charles Wallace, WLJ contributing editor
