Thursday markets
Tariff news and a sell-off in the stock indices created volatility in cattle futures, closing lower.
“Dramatic and fluid developments in the continuing US tariff story continue to pull focus from the more mundane cattle and beef market fundamentals,” Cassie Fish, market analyst, wrote in The Beef. “Futures markets magnify the unsettled nature of these times and the result is volatility.”
Live cattle futures were slightly lower, with the April contract down 27 cents to $196.27 and the June contract down 7 cents to $192.62.
Cash trade was moderate, with 2,324 head sold.
On the formula side, 40,200 head averaging 914 lbs. sold for an average of $316.65.
“This week’s negotiated fed cattle trade has gotten off to a slow start, with just under 5k head having traded from $195 to $200 and $310 dressed,” Fish wrote. “Bids of $195 are widespread this morning and there are reports of a $196 trade in Kansas. Last week’s 5-area average price was $197.65. Market-ready fed cattle supplies grow from here on out seasonally. The widely touted bullish tighter supply won’t be here for several months.”
Today’s slaughter is estimated to be 122,000 head, 4,000 head above a week earlier.
Actual slaughter for the week ending Feb. 22 was 564,737 head. The average steer dressed weight was 946 lbs., 8 lbs. below a week earlier.
Boxed beef prices were mixed on 122 loads, with the Choice cutout down 42 cents to $313.12 and the Select cutout up 98 cents to $303.51.
Feeder cattle
Feeder cattle took back some of yesterday’s gains, with the March contract down $2.07 to $274.02 and the April contract down $1.65 to $274.42.
The CME Feeder Cattle Index was down 88 cents to $277.87.
Corn futures rallied, with the March contract up 9 cents to $4.49 and the May contract up 8 cents to $4.64.
Kansas: Winter Livestock in Dodge City sold 3,400 head on Wednesday. Compared to the last auction, feeder steers over 700 lbs. sold steady to $5 lower and under 700 lbs. sold $5 higher. Heifers over 650 lbs. sold steady to $5 higher and under 650 lbs. sold steady to $10 higher. Benchmark steers averaging 731 lbs. sold for $281-302, averaging $295.25.
Nebraska: Huss Livestock in Kearney sold 4,002 head on Wednesday. Compared to the previous auction, steers 650-900 lbs. sold steady to $5 higher and over 900 lbs. sold steady to $7 lower. Heifers 500-750 lbs. sold steady to $3 higher and over 750 lbs. sold steady to $5 lower. Benchmark steers averaging 723 lbs. sold for $299-311, averaging $305.80. — Charles Wallace, WLJ contributing editor
