Thursday markets
Cattle futures closed sharply lower after news broke that workers at JBS in the Greeley, CO, plant voted to authorize an unfair labor practice strike.
“The news focus seems to be pointed to the processing reduction seen in the JBS Greeley plant based on reported impending strikes at the plant,” DTN said in their midday comments.
According to DTN, the likelihood of a major, long-term impact on overall industry processing capacity is limited, as the current market structure and available company capacity allow processors to reroute cattle to other plants to meet short-term needs. DTN added that monitoring daily slaughter rates through February will be key to gauging true capacity, while firm pressure in outside markets and softer beef values have contributed to buyer hesitation in futures, with concerns that the market may have exhausted upside momentum at current price levels.
Live cattle futures closed over $5 lower, with the February contract down $5.27 to $235.15 and the April contract $6.20 lower to close at $235.52.
Cash trade was light, with 1,766 head sold. Live steers sold between $237-238, and dressed steers sold for $378.
On the formula side, 30,500 head averaging 954 lbs. sold for an average of $380.02.
Today’s slaughter is estimated to be 114,000 head, 2,000 head above the prior week.
Actual slaughter for the week ending Jan. 24 was 540,305 head. The average steer dressed weight was 987 lbs., up 3 lbs. from the prior week.
Boxed beef prices were lower on 115 loads, with the Choice cutout down 77 cents to $367.25 and the Select cutout $1.72 lower to $360.37.
Feeder cattle
Feeder cattle futures closed in the red, with the March contract $6 lower to $365.35 and the April contract $7 lower to close at $360.97.
The CME Feeder Cattle Index was up 59 cents to $375.16.
Corn futures closed higher, with the March contract up 5 cents to close at $4.35 and the May contract 6 cents higher to $4.43.
Kansas: Winter Livestock in Dodge City sold 2,859 head on Wednesday. Compared to the previous auction, steers over 600 lbs. sold $5 lower to $5 higher, and heifers over 600 lbs. sold $20 higher, with a couple of instances of sharply higher. There were not enough sales of steers and heifers under 600 lbs. for a market test. Benchmark steers averaging 780 lbs. sold between $374.25-381, averaging $375.46.
Nebraska: Huss Livestock in Kearney sold 4,641 head on Wednesday. Compared to the last auction, steers over 600 lbs. and heifers over 500 lbs. sold unevenly steady. Benchmark steers averaging 723 lbs. sold between $395-421.50, averaging $408.28.
Oklahoma: OKC West in El Reno sold 4,003 head on Wednesday. Compared to the previous auction, feeder steers sold $10-15 higher. Feeder heifers sold $10-20 higher. Steer and heifer calves sold $20-25 higher in a light test. Benchmark steers averaging 770 lbs. sold between $368-385, averaging $373.61.
Wyoming: Torrington Livestock in Torrington sold 4,711 head on Wednesday. Compared to the last auction, feeder steers and heifers traded mostly steady on comparable trades, with the exception of fly-weight steers trading $10-15 higher. Benchmark steers averaging 718 lbs. sold between $396-406, averaging $399.18. — Charles Wallace, WLJ contributing editor
