Cattle futures posted significant gains over the week as traders pushed contracts to new highs. With both live and feeder cattle futures on an upward streak, analysts say the momentum shows strong demand and bullish sentiment despite broader market uncertainties.
Live cattle futures gained several dollars. The April contract gained nearly $6 to close at $202.05, and the June contract also gained about $6 to close at $198.27.
“Today, the cattle market is immune from market uncertainty and declining equities as it surges ever high after bottoming eight trading days ago,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Technically, the market has moved into overbought territory but remains unphased.”
Cash trade through Thursday totaled only about 2,000 head. There were no market trends noted on such short supply.
“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 said. “Higher cattle costs mean margins remain red, despite the cutout rally this week.”
Cash trade for the week ending March 9 totaled 74,437 head. Live steers averaged $200.47, and dressed steers averaged $316.54.
Slaughter through Thursday totaled about 483,000 head, compared to 467,000 head a week earlier. Expected total slaughter for a week earlier is estimated at 578,000 head. 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 saw gains over the week. The Choice cutout gained more than $6 to close at $313.12, and the Select cutout gained about $4 to close at $307.47.
“It’s several weeks until dependable middle meat demand typically shows its hand, so there is a question as to whether the market will see a pullback in the cutout in April like occurred in 2024 before resuming the highly probable May and June cutout rally,” Fish said.
Feeder cattle
Feeder cattle futures gained several dollars over the week. The March contract gained about $6 to close at $280.22, and the April contract gained close to $5 to close at $279.97.
“The feeder cattle complex continues to push its contracts higher and higher, which seems to signal robust buying from traders as the market’s direction is undoubtedly higher due to the vast majority of the nearby contracts reaching new contract highs again today,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
The CME Feeder Cattle Index gained 84 cents to close at $278.71.
Corn futures traded mostly sideways. The March contract gained 4 cents to close at $4.53, and the May contract gained a penny to close at $4.65.
Colorado: Winter Livestock in La Junta sold 6,937 head on Tuesday. Compared to the last auction, feeder steers sold $5-8 higher, with instances of sharply higher across all weight classes. Feeder heifers sold $3-8 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 722 lbs. sold for $281-300, averaging $293.90.
Iowa: Russell Livestock in Russell sold 2,927 head on Monday. Compared to the last auction two weeks earlier, steers sold mostly steady to $21 higher, except 600-650 lbs. sold $4 lower. Heifers sold steady to $18 higher. Benchmark steers averaging 784 lbs. sold for $265-299.25, averaging $292.54.
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. Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to the previous sale, feeder steers and heifers sold $5-20 higher. Benchmark steers averaging 778 lbs. sold from $265-300, averaging $281.89.
Nebraska: Tri-State Livestock in McCook sold 1,464 head on Monday. Compared to the previous auction, steers over 600 lbs. sold $2-16 higher and heifers were $4-15 higher. Benchmark steers averaging 722 lbs. sold for $300-311, averaging $307.92.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,000 head on Monday. Compared to a week earlier, feeder steers sold from $5-10 higher and feeder heifers sold from $3-8 higher. Stocker steers and steer calves sold $5-15 higher, and stock heifers and heifer calves sold mostly steady. Benchmark steers averaging 777 lbs. sold from $265-289, averaging $281.03.
South Dakota: Sioux Falls Regional sold 2,499 head on Monday. Compared to a week earlier, feeder steers sold steady to $5 higher, with instances of $6-10 higher. Feeder heifers sold $5-10 higher, except 700-800 lbs. sold steady. Benchmark steers averaging 794 lbs. sold from $280-286, averaging $284.58. — Anna Miller, WLJ managing editor
