Thursday markets
Cattle futures closed mixed as packers and feedlots are holding out on cash trade.
Live cattle futures were slightly higher, with the April contract up 65 cents to $202.05 and the June contract up 40 cents to $198.27.
“Some contract months are making contract highs; others are making new highs for the move,” Cassie Fish, market analyst, wrote in The Beef. “Futures have not gotten confirmation of higher negotiated fed cattle prices yet this week—as trade has not gotten underway and April LC is unabashedly premium to last week’s market.”
Cash trade was minimal, with only 244 head sold—not enough for a market trend.
On the formula side, 44,600 head averaging 910 lbs. sold for an average of $316.45.
“Packers are stuck watching the red hot futures rally, needing to replenish cash fed cattle inventories and knowing they will be forced to pay up,” Fish wrote. “It has been very quiet in the country today. Higher cattle costs mean margins remain red despite the cutout rally this week.”
Today’s slaughter is estimated to be 121,000 head, 1,000 head lower than a week earlier.
Actual slaughter for the week ending March 1 was 568,747 head. The average steer dressed weight was 942 lbs., 4 lbs. below a week earlier.
Boxed beef prices were lower on 162 loads, with the Choice cutout down $1.41 to $319.69 and the Select cutout down 6 cents to $307.47.
Feeder cattle
Feeder cattle futures were higher during the trading day but closed lower. The March contract was down 2 cents to $280.22 and the April contract was down 75 cents to $279.97.
The CME Feeder Cattle Index was up $2.17 to $278.71.
Corn futures were higher, with the March and May contracts up 4 cents to $4.53 and $4.65, respectively.
Kansas: Winter Livestock in Dodge City sold 6,134 head on Wednesday. Compared to the last auction, feeder steers over 550 lbs. sold steady to $10 higher. Heifers over 650 lbs. sold steady to $10 higher. Steers under 550 lbs. and heifers under 650 lbs. sold steady and strong. Benchmark steers averaging 782 lbs. sold for $276-287, averaging $280.71.
New Mexico: Clovis Livestock in Clovis sold 1,920 head on Wednesday. Compared to the previous auction, steer and heifer calves sold $12-20 higher. Feeder steers and heifers sold $6-10 higher. A group of steers averaging 756 lbs. sold for $273-284, averaging $280.97.
Oklahoma: OKC West in El Reno sold 8,917 head on Wednesday. Compared to the last auction, feeder steer traded $10-15 higher, with a few instances of $20 higher. Feeder heifers sold $15-20 higher. Steers and heifer calves sold $10-20 higher. Benchmark steers averaging 723 lbs. sold for $297-312, averaging $305.82.
South Dakota: Hub City Livestock in Aberdeen sold 7,205 head on Wednesday. Compared to the previous auction, steers 600-699 lbs., 750-799 lbs., and 850-899 lbs. sold mostly steady, with an instance of $10 higher on 650-699 lbs. Steers 700-749 lbs. and 800-849 lbs. sold $7-12 higher, 900-949 lbs. traded $5-6 higher, and 950-999 lbs. were steady to $2 higher. Heifers 600-749 lbs. sold $4-8 higher, and 750-849 lbs. were $2-3 higher. Benchmark steers averaging 777 lbs. sold between $292-302.75, averaging $299.38. — Charles Wallace, WLJ contributing editor
