Everyone waited with bated breath to see where markets would head after such a turbulent week. Live cattle traded mixed, feeder cattle higher, and the price of corn continued to hold its own.
Live cattle contracts bounced around on either side of the market all week, and ultimately closed Thursday mixed from the week prior. The February contract settled at $117, compared to the prior Friday’s close of $115.92. The April contract was down to $121.67 from the prior week’s price of $123.67.
“Live cattle futures are being pressured to trade mostly lower as the market wonders where the week’s cash cattle market will end up and where the week’s official slaughter count will land and is absorbing the aftermath of a weaker export report,” commented ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash cattle traded at the $114 mark all week and dressed steers at $181 and some change. The week prior, only a total of 74,306 head were able to be traded through the winter storm. Live steers averaged $114.05 and dressed steers averaged $180.49.
The Fed Cattle Exchange listed 1,199 head Wednesday for their virtual weekly sale, of which 409 head actually sold. Opening prices ranged from $112-113.50, and high bids ranged from $114-114.25. All purchased cattle came from Texas and sold for $114.25.
The Exchange also held a Special Auction Thursday morning and listed a total of 790 head, of which none sold. They did not meet the reserve prices ranging from $115-116. Opening prices were at $113.50, high bids ranged from $114.25-114.50. Seeing that no cattle sold, the market planned to host another specialty sale Friday morning.
The question on everyone’s mind last week was whether processors were going to be able to pick up the pace and get slaughter back on track again.
“Thankfully packers have every incentive they need to push vigorously in their efforts to get plants running as boxed beef prices favor their bottom lines,” Stewart commented Monday afternoon.
As of Thursday afternoon, a total of 483,000 head had been processed, compared to 380,000 head the week prior. The same time last year slaughter was recorded at 486,000 head. So, processors have been up and running. USDA released actual slaughter data for the week ending Feb. 12, which totaled 606,208 head.
Boxed beef prices have traded mostly steady, closing Thursday with the Choice cutout at $240.39 and the Select cutout at $228.79.
USDA released its latest Cattle on Feed report, which was about as economists predicted. Cattle and calves on feed for January were reported 1 percent higher than the same time last year. This is the second highest February inventory on record.
Placements were 3 percent higher than 2020. Marketings of fed cattle were 6 percent below last year’s levels. Other disappearance was 4 percent above 2020.
March’s report will give insight on how great the severe weather impacted February placements.
Feeder cattle
Feeder cattle contracts traded mostly higher throughout the week, closing Thursday higher than the week prior. The March contract closed at $140.42 and the April contract at $145.07. Corn prices have held steady, closing Thursday at $5.54. The CME Feeder Cattle Index closed higher at $139.48.
“Traders are leery of the live cattle contracts given the unknown nature of this week’s cash cattle market and leery of the lean hog market because of the weaker export report. All of which gives traders the green light to invest in feeder cattle contracts as it’s a safe investment while demand is strong throughout sale barns and the board is far from any resistance pressure,” Stewart remarked Thursday afternoon.
Colorado: La Junta Livestock Commission in La Junta sold 1,033 head Wednesday. Compared with the previous sale, all weights of feeder steers sold steady to $1 higher, except six-weights sold $2-3 higher. All weights of feeder heifers mostly steady. Benchmark steers averaging 716 lbs. sold between $136-137.
Iowa: Russell Livestock in Russell sold 5,114 head. Compared to two weeks prior, steer calves 450-550 lbs. were steady to $2 higher; 550-800 lbs. sold $7-10 higher; and eight-weights sold $1-3 higher. Heifer calves 450-550 lbs. were steady to $9 higher; 550-800 lbs. sold $4-9 higher. Benchmark steers averaging 771 lbs. sold between $135.50-149.35.
Missouri: Joplin Regional Stockyards in Carthage sold 4,000 head Monday. Compared to the last sale two weeks prior, steers and heifers under 600 lbs. sold $7-10 higher. Benchmark steers averaging 723 lbs. sold between $134-141.75.
Montana: Miles City Livestock Commission Auction in Miles City sold 2,202 head Tuesday. The best test for steers was for 600-649 lbs., which sold mostly $1-3 higher. All other steer weights sold unevenly steady. Heifers 500-699 lbs. sold steady to $5 higher and all other heifers sold unevenly steady. Benchmark steers averaging 740 lbs. sold between $142-143.
Nebraska: Huss Livestock Market in Kearney sold 5,078 head Wednesday. Compared to the last sale’s light test, steers under 650 lbs. sold $8-10 higher; and over 650 lbs. sold steady to $5 higher. Heifers sold steady. Benchmark steers averaging 782 lbs. sold between $137-149.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 2,723 head Monday. Compared to the last sale two weeks prior, feeder steers and heifers were lightly tested and a few sales were steady to $2 higher. Demand was moderate to good for feeder cattle following a week of no sales due to weather. Steer and heifer calves sold steady in a light test. Demand was good for calves. Benchmark steers averaging 779 lbs. sold between $130-135.75.
South Dakota: Sioux Falls Regional Cattle Auction in Sioux Falls sold 5,685 head Monday. Compared to the week prior, feeder steers and heifers sold with definite higher undertones. Due to intense frigid temperatures the week prior, there were several cancellations that rolled over to last week, making receipts much larger. Demand for the offering of cattle was very good. Benchmark steers averaging 772 lbs. sold between $140-149. — Anna Miller, WLJ editor
