Thursday markets
Cattle futures posted impressive gains, while grains saw a big selloff.
Live cattle futures were higher, with the February contract up 57 cents to $199.40, the April contract up $1.50 to $196.12 and the June contract up $1.05 to $192.32.
Cash trade was light, with 2,918 head sold. Live steers sold for $198, and dressed steers sold for $311-313.
On the formula side, 35,400 head averaging 900 lbs. sold for an average of $320.11.
“Trade has begun to develop at $313 in eastern Nebraska, $1.89/cwt lower than a week ago,” Cassie Fish, market analyst, wrote in The Beef. “It’s also been noted that sale barn runs in the North of fed cattle have increased this week. At the same time, this week’s rally in boxed beef values this week is stalling out and packers remain big time red. Cattle feeders are trying to stay friendly, heartened by the green futures market today and some are passing lower bids with confidence.”
Today’s slaughter is estimated to be 118,000 head, 1,000 head above a week earlier.
Actual slaughter for the week ending Feb. 15 was 562,260 head. The average steer dressed weight was 954 lbs., 3 lbs. above a week earlier.
“For now, record carcass weights are significantly offsetting production cuts,” Fish wrote. “Steer carcass weights for the week ending February 15 were up 3 pounds from a week ago and are 40 pounds over a year ago at 954 lbs., while heifers weights were up 7 lbs. from a week ago and are 45 lbs. over a year ago. These year-over-year differences are historically eye-popping.”
Boxed beef prices were lower on 163 loads, with the Choice cutout down $1.72 to $311.18 and the Select cutout down $1.11 to $302.13.
Feeder cattle
Feeder cattle futures gained over $2, with the March contract up $2.07 to $276.45 and the April contract up $2.02 to $275.55.
The CME Feeder Cattle Index was down 71 cents to $278.73.
Corn futures saw a big selloff, with the March contract down 13 cents to $4.64 and the May contract down 12 cents to $4.81.
Kansas: Winter Livestock in Dodge City sold 3,851 head on Wednesday. Compared to the last auction, feeder steers sold $5-15 higher on all weights. Heifers over 600 lbs. sold $10 higher. Benchmark steers averaging 773 lbs. sold for $269-285.75, averaging $280.17.
Nebraska: Huss Livestock in Kearney sold 4,944 head on Wednesday. Compared to the last auction, steers over 600 lbs. sold steady to $5 higher. Heifers 550-700 lbs. sold steady to $4 higher and 700-800 lbs. heifers were steady to $5 lower. Benchmark steers averaging 722 lbs. sold for $286-310.50, averaging $298.92.
Oklahoma: OKC West in El Reno sold 10,820 head on Wednesday. Compared to the last auction, feeder steers sold $6-12 higher. Feeder heifers traded $15-20 higher. Steer and heifer calves sold $15-20 higher, with instances of up to $25 higher on heifers. Benchmark steers averaging 718 lbs. sold for $271-299, averaging $286.94.
South Dakota: Hub City Livestock in Aberdeen sold 7,475 head on Wednesday. Compared to the last auction, steers 700-749 lbs. sold $7-12 higher, 750-799 lbs. and 900-999 lbs. sold mostly steady, and other weight classes not well compared. Heifers 650-699 lbs. sold mostly steady, 750-799 lbs. traded $4-5 higher, and other weight classes not well compared. — Charles Wallace, WLJ contributing editor
