Thursday markets
The livestock complex lost support with triple-digit losses and nearby contracts at a four-week low.
Live cattle futures were lower, with the February contract down $2.97 to $200.62 and the April contract down $4.52 to $196.77.
“The shift lower is now testing April and June futures at the 40-day moving average level, which may create additional concern through the upcoming days and weeks,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “In the last week, live cattle futures have fallen over $11 per cwt from all-time highs, creating a concern that traders are now searching for a sense of market support, which, after Thursday’s moves, could be hard to solidify in the near future. The continued shift lower in cash cattle prices and beef values is adding to the overall futures market weakness. Even though cattle and beef supplies remain limited, the momentum seen through December and January has quickly evaporated in the first week of February.”
Cash trade was active, with 33,668 head sold. Live steers sold for $205-208, and dressed steers sold between $325-333.
On the formula side, 32,000 head averaging 932 lbs. sold for an average of $333.51.
Faced with steeply negative margins, packers opened with cash cattle bids significantly lower than the previous week.
“The cattle feeder has sold about 22k head this week, generally about $3/cwt lower than a week ago, which was the all-time high of $209.57 basis the 5-area average steer price reported by USDA,” Cassie Fish, market analyst, wrote for The Beef.
Today’s slaughter is estimated to be 118,000 head, 4,000 head below a week earlier.
Actual slaughter for the week ending Jan. 25 was 593,858 head. The average steer dressed weight was 948 lbs., 6 lbs. below a week earlier.
Boxed beef prices were mixed on 114 loads, with the Choice cutout down $1.36 to $323.98 and the Select cutout up 44 cents to $314.77.
Feeder cattle
Feeder cattle took a beating, with the January contract down $5.42 to $265.30 and the March contract down $5.47 to $265.
The CME Feeder Cattle Index was down 42 cents to $279.03.
Corn futures were higher, with the March and May contracts up 2 cents to $4.95 and $5.07, respectively.
Kansas: Winter Livestock in Dodge City sold 2,351 head on Wednesday. Compared to the last auction, steers over 800 lbs. sold steady to $5 higher, while 600-800 lbs. sold steady to $5 lower. Heifers 500-900 lbs. sold steady to $5 higher. Steers and heifers under 500 lbs. sold $10 lower. Benchmark steers averaging 719 lbs. sold for $270-293.50, averaging $282.19.
Nebraska: Bassett Livestock in Bassett sold 2,920 head on Wednesday. Compared to the last auction, steers and heifers traded unevenly steady. Benchmark steers averaging 707 lbs. sold for $305-312.50, averaging $306.17.
New Mexico: Clovis Livestock in Clovis sold 2,407 head on Wednesday. Compared to the last auction, steer calves 300-350 lbs. and 500-600 lbs. sold $7-10 higher, while feeder steers were steady to $7 higher. Heifer calves 400-450 lbs. and 500-600 lbs. sold $7 higher and 450-500 lbs. were $6 lower. Heifer yearlings sold steady to $6 higher. Benchmark steers averaging 718 lbs. sold for $260-276.50, averaging $272.57.
Oklahoma: OKC West in El Reno sold 8,646 head on Wednesday. Compared to the previous auction, feeder steers sold $6-14 lower. Feeder heifers traded $5-10 lower. Benchmark steers averaging 723 lbs. sold for $273-292.50, averaging $285.34. — Charles Wallace, WLJ contributing editor
