After getting into the swing of spring the second week of April, markets slowed down and were unwilling to move higher last week. Cash trade managed to pick up at the end of the week, but futures stayed red across the boards.
Live cattle contracts sold lower all week, settling Thursday with the April contract at $121.60 and the June contract at $119.65.
“As feedlots look at a sixth consecutive day in a row of weaker trade, they look at the cash cattle market and know if there’s one place the market is going to shoot them some positivity this week it’s going to be in the cash market,” ShayLe Stewart, DTN livestock analyst, commented in her midday Thursday comments.
Cash trade was at a standstill through the beginning of the week but picked up on Thursday with 39,187 head selling between $119-126. Dressed steers sold from $193-196. The week prior saw a sizable amount of cash trade, up several dollars higher from a week earlier. A total of 108,513 head sold, with live steers averaging $121.99 and dressed steers $195.24.
The Fed Cattle Exchange held its weekly online sale Wednesday, offering 3,643 head, of which none actually sold. Opening prices ranged from $120-128, but no reserve prices were met. High bids reached $126. The Exchange also hosted a sale on Thursday, where they offered 3,574 head, of which none sold again. Opening bids ranged from $119.50-$126 and high bids reached $120, unable to meet the reserve prices.
Slaughter through Thursday totaled 457,000 head, compared to a week earlier at 464,000 head. A year ago, slaughter only totaled 363,000 head due to the constraints of COVID-19. Total slaughter for the week ending April 10 is estimated at 641,000 head. USDA released actual slaughter data for the week ending March 27, which totaled 648,796 head.
Boxed beef prices continue to climb higher, with the Choice cutout at $276.62 and the Select cutout at $268.43 on Thursday.
Feeder cattle
Feeders were unwilling to move higher with the price of corn rallying throughout the week, almost reaching $6. As of Thursday, the May corn contract was sitting at $5.90.
April feeders were down several dollars to $140.05 and May feeders down to $144.42. The CME Feeder Cattle Index was reported Thursday at $142.30, up a few dollars from the week prior.
“If cash cattle can sell higher, then there may be enough supportive momentum in the complex to rally the feeder cattle higher,” Stewart said.
Western Video Market held one of the first sales of the season April 15 in Turlock, CA. Value-added and program cattle were in good demand. Gansberg Ranch from Ione, CA, sold a lot of 300 program steer calves weighing 600 lbs. with SAV, NHTC, Verified Natural, GAP 4, and non-GMO for $167. Boston Ranch from Exeter, CA, sold a lot of ranch-raised 550-lb. steer calves for $181.50. Petan Ranch Co. of Tuscarora, NV, sold 135 heifers weighing 385 lbs. for $174.
Colorado: Winter Livestock in La Junta sold 1,209 head Tuesday. Compared to the prior sale, feeder steers and heifers under 700 lbs. sold in a light test $3-5 lower; over 700 lbs. sold $2-4 lower. Benchmark steers averaging 734 lbs. sold for $140.
Iowa: Russell Livestock in Russell sold 5,052 head on Monday. Trade was active compared to two weeks prior with steer calves 500-600 lbs. $4-7 higher; 600-750 lbs. steady to $4 higher; and 750-850 lbs. $4 higher. Heifer calves 500-650 lbs. were steady to $4 higher; 650-800 lbs. sold mostly steady to $3 higher. Demand was good for the heavy offerings. Benchmark steers averaging 765 lbs. sold between $146.25-157.50, averaging $154.25.
Kansas: Winter Livestock in Dodge City sold 2,263 head Wednesday. Compared to the prior week, feeder steers 400-1,000 lbs. sold $4-8 lower. Feeder heifers 400-925 lbs. sold $4-8 lower. Benchmark steers averaging 720 lbs. sold between $140-142.50.
Missouri: Joplin Regional Stockyards in Carthage sold 6,000 head Monday. Compared to the prior sale, feeder steers traded steady and feeder heifers traded steady to $4 higher. Benchmark steers averaging 773 lbs. sold between $140-144.
New Mexico: Roswell Livestock Auction in Roswell sold 1,297 head on Monday. Compared to the prior week: Steer calves under 600 lbs. sold mostly $10-16 higher with instances of $28 higher on 300-350 lbs. There was no accurate comparison over 600 lbs., but a lower undertone was noted, except a few 700-750 lbs. traded $8 higher. Heifer calves under 450 lbs. were $6-12 higher; over 450 lbs. sold $2-7 higher. Benchmark steers averaging 704 lbs. sold at $142.50 with 19 head sold.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,800 head Monday. Compared to the week prior, feeder steers sold steady to $1 higher and feeder heifers sold steady to $2 higher. Steer calves sold $1-2 lower and heifer calves sold unevenly steady. Benchmark steers averaging 776 lbs. sold from $139-146.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,051 head Monday. Compared to the prior week, feeder steers sold $3-5 higher, except 700-750 lbs. sold steady to $4 lower and 800-850 lbs. sold $2-3 lower. Heifers sold $2-4 higher, except 550-600 lbs. sold $2 lower, and 700-750 lbs. sold $2-5 lower. Benchmark steers averaging 766 lbs. sold between $149.50-155.50. — Anna Miller, WLJ managing editor
