With Memorial Day just days away, beef demand was heating up over the week.
Live cattle futures closed out the week higher. The June contract gained $4.45 to close at $215.62, and the August contract gained $4.65 to close at $210.50.
Cash trade through Thursday totaled about 32,500 head. Live steers sold from $224-231, and dressed steers sold from $358-370.
“Packers continue to scramble to accumulate this week’s negotiated fed cattle purchases, despite buying for a short week next week—a slaughter which could be historically small if the rumors are to be believed,” said Cassie Fish, market analyst, in The Beef on Thursday.
Cash trade for the week ending May 18 totaled 81,722 head. Live steers sold from $220-229, averaging $226.88. Dressed steers sold from $354-358, averaging $357.34.
Slaughter through Thursday totaled about 355,000 head, compared to 339,000 head a week earlier. Total slaughter for a week earlier is estimated at 566,000 head. Actual slaughter for the week ending May 10 was 560,823 head. The average steer dressed weight was 945 lbs., 7 lbs. above the previous week.
“There is talk next week’s Memorial Day-shortened production schedule could be 500k head or smaller, which if true, is likely record small,” Fish said.
Boxed beef prices sailed higher over the week ahead of the Memorial Day holiday. The Choice cutout gained more than $11 to close at $360.97, and the Select cutout gained close to $10 to close at $348.95.
“Winter weather pushes consumers to end meats and roasts and historically a spring warm up triggers demand for the middle meats and cook outs,” the Ag Center wrote on Thursday. “The daily fluctuations of the primals represent seasonal changes and consumer preferences caused by pricing.”
USDA’s Cattle on Feed report was set to be released on Friday, May 23. Pre-report estimates pegged cattle on feed for May 1 at 98.6% of last year, and placements down about 2%. Marketings were projected at 96.7% of 2024.
“Losing Mexican feeder cattle imports will result in less cattle be available to place and market as the year stretches onward,” Fish said.
Feeder cattle
Feeder cattle futures were mixed over the week, with the May contract down less than a dollar to $295.10 and the August contract up about $4 to $299.77.
“So long as the support remains ample from the live cattle/fed cash cattle market, the feeder cattle complex should be able to maintain its higher trend,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
The CME Feeder Cattle Index lost $4.77 to close at $297.64.
Corn futures made gains, up 16 cents apiece on the July and September contracts, closing at $4.63 and $4.41, respectively.
Iowa: Russell Livestock in Russell sold 5,003 head on Monday. Compared to the last auction two weeks earlier, light steers under 500 lbs. and 550-650 lbs. sold $2-23 lower, while 500-550 lbs. and 650 lbs. and heavier steers sold steady to $22 higher. Heifers less than 500 lbs. sold steady to $4 higher, while heifers over 500 lbs. sold $10 to sharply higher. Benchmark steers averaging 714 lbs. sold for $325-350, averaging $346.59.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head on Monday. Feeder steers sold steady to $5 lower, and feeder heifers sold from $5 lower to $5 higher. Benchmark steers averaging 767 lbs. sold from $295.50-316, averaging $300.55.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,400 head on Monday. Compared to the previous sale, all classes of cattle sold $5-10 lower at the mid-session. Benchmark steers averaging 772 lbs. sold for $296.
South Dakota: Sioux Falls Regional in Worthing sold 2,183 head on Monday. Compared to a week earlier, feeder steers sold steady to $5 lower and heifers sold $2-6 lower. Benchmark steers averaging 741 lbs. sold from $320.50-330, averaging $325.87.
Texas: Lonestar Stockyards in Wildorado sold 1,013 head on Tuesday. Compared to the last auction, feeder heifers traded mostly $6 higher. There were not enough comparable sales on feeder steers for a market trend and calves were too lightly tested for a market trend. A group of steers averaging 831 lbs. sold for $289.25. — Anna Miller, WLJ managing editor
