Thursday markets
The livestock complex experienced gains driven by bullish fundamentals and interest from managed funds.
“Another day, another contract high,” Cassie Fish, market analyst, wrote in The Beef. “So goes CME cattle futures markets as the bull continues unchecked. Yesterday saw a massive increase in open interest in live cattle futures, up over 6k contracts, which is very likely a sign of active managed fund buying and commercial selling.”
Live cattle futures closed higher, with the April contract up $1.65 to $208.47 and the June contract up $2.17 to $205.02.
Cash trade was light, with only 173 head sold.
On the formula side, 31,100 head averaging 925 lbs. sold for an average of $325.23.
“Asking prices are sharply higher in the country, and so far, there has been very little action, the USDA reporting only 1.1k head having traded as of this morning,” Fish wrote. “Yesterday’s inclement weather put a damper on slaughter, which came in at a low 96,000 head, down about 16k head from expectations. So far, it’s unclear if much of that lost production will be made up this week, especially considering packer margins are still red, even with the rally in boxed beef prices.”
Today’s slaughter is estimated to be 114,000 head, 7,000 head lower than a week earlier. Yesterday’s slaughter was revised downward to 89,000 head from the original 96,000 head estimate.
Actual slaughter for the week ending March 8 was 579,267 head. The average steer dressed weight was 945 lbs., 3 lbs. above the prior week.
As of WLJ press time, the USDA stated, “Due to packer submission issues, the release of this report will be delayed.”
As of this morning, boxed beef prices were up slightly, with the Choice up $0.34 ($329.95) and Select up $1.74 ($310.42).
Feeder cattle
Feeder cattle also closed triple digits higher, with the March contract up $1.52 to $288.35 and the April contract up $1.72 to $288.45.
The CME Feeder Cattle Index was up 54 cents to $284.65.
Corn futures were higher, with the May contract up 7 cents to $4.69 and the July contract up 6 cents to $4.75.
Kansas: Winter Livestock in Dodge City sold 2,235 head on Wednesday. Compared to the previous auction, feeder steers and heifers over 600 lbs. sold steady to $8 higher. Steers and heifers under 600 lbs. were not well tested. Benchmark steers averaging 730 lbs. sold for $282-296.75, averaging $290.25.
Nebraska: Huss Livestock in Kearney sold 2,581 head on Wednesday. Compared to the last auction two weeks ago, steers and heifers over 600 lbs. sold steady to $10 higher. Benchmark steers averaging 732 lbs. sold for $300-320, averaging $314.36.
New Mexico: Clovis Livestock in Clovis sold 1,472 head on Wednesday. Compared to the last auction, feeder steers and heifers were mostly steady after last week’s sharply higher market. Benchmark steers averaging 738 lbs. sold for $284-295, averaging $291.52.
Oklahoma: OKC West in El Reno sold 9,519 head on Wednesday. Compared to the previous auction, feeder steers traded $1-3 higher. Feeder heifers traded $3-5 higher. Benchmark steers averaging 718 lbs. sold for $292-320 averaging $310.16. — Charles Wallace, WLJ contributing editor
