Thursday markets
Cattle futures began the trading day higher, but closed mostly lower.
“Whether it’s worry over the next round of political rhetoric aimed at beef, concern over negative packer margins or the tepid spring boxed beef rally or speculation over consumer beef demand being negatively impacted by inflationary pressures, reasons that a top might be imminent are plentiful. But the market marches on,” wrote Cassie Fish, market analyst, in The Beef.
Live cattle futures closed lower, with the June contract down 72 cents to $252.07 and the August contract 32 cents lower to $246.15.
Cash trade was moderate, with 8,593 head sold. Live steers sold for $264-265, and dressed steers sold between $410-415.
On the formula side, 22,100 head averaging 946 lbs. sold for an average of $408.05.
Today’s slaughter is estimated to be 108,000 head, 1,000 head below last week. Actual slaughter for the week ending May 2 was 531,029 head. The average steer dressed weight was 978 lbs.
Boxed beef prices were mixed on 99 loads, with the Choice cutout down $1.23 to $387.45 and the Select cutout 42 cents higher to $389. The Choice/Select spread was negative $1.55.
Feeder cattle
Feeder cattle futures closed mixed, with the May contract up 25 cents to $367.57 and the August contract down $2.92 to $358.
The CME Feeder Cattle Index was down 51 cents to $373.86.
Corn futures experienced a sell-off, with the May contract down 15 cents to $4.51 and the July contract 13 cents lower to $4.67.
Kansas: Winter Livestock in Dodge City sold 3,091 head on Wednesday. Compared to the last auction, steers and heifers over 550 lbs. sold steady, with a strong undertone noted. Steers and heifers under 550 lbs. sold $20 higher to sharply higher. Benchmark steers averaging 761 lbs. sold for $364-388, averaging $376.91.
Nebraska: Huss Livestock in Kearney sold 1,855 head on Wednesday. Compared to the last auction, steers and heifers sold unevenly steady. Benchmark steers averaging 728 lbs. sold for $410.
Oklahoma: OKC West in El Reno sold 11,009 head on Wednesday. Compared to the last auction, feeder steers sold $4-14 lower, with the biggest decline on heavy weights. Feeder heifers over 750 lbs. sold $8-13 lower, and under 750 lbs. traded $5-8 lower. Benchmark steers averaging 774 lbs. sold for $370-380, averaging $373.53. — Charles Wallace, WLJ contributing editor
