Packers have slowed their weekly slaughter and are trying to keep cash trade steady to boost sagging margins. As a result, boxed beef prices climbed over $4.
“The message from the processors is to continue small slaughter numbers until they can better manage the margins—either by increasing box prices or decreasing cash prices,” the Cattle Report wrote on Thursday. “Cattle owners will continue to attempt to leverage their position of declining fed supplies and convert the advantage into higher prices.”
Live cattle futures were lower, with the April contract down $1.77 to $186.95 and the June contract down $1.23 to $183.37.
Cash trade through Thursday was light, totaling 10,000 head. Live steers sold between $187-190, and dressed steers sold between $294-301.
ShayLe Stewart, DTN livestock analyst, reported on Thursday bids were offered at $292 in Nebraska, but feedlots were not biting. “Asking prices in the North are firm at $300, and in the South feedlots are asking $188,” Stewart continued.
The national weekly direct beef type price distribution for the week of March 4-11 was the following on a live basis:
• Negotiated purchases: $185.14.
• Formula net purchases: $186.33.
• Forward contract net purchases: $193.28.
• Negotiated grid net purchases: $186.45.
On a dressed basis:
• Negotiated purchases: $294.25.
• Formula net purchases: $294.06.
• Forward contract net purchases: $302.39.
• Negotiated grid net purchases: $291.88.
Slaughter through Thursday was estimated at 473,000 head, 11,000 head lower than a week earlier. The projected total slaughter for the week prior was 583,000 head, 48,000 head lower than last year.
“This week’s slaughter could fall between 570k and 580k head, down from 628k a year ago,” Cassie Fish, market analyst, wrote in The Beef on Thursday. “Next week could be the same, but in 2023, the corresponding kill was 645k.”
Actual slaughter for the week ending March 2 was 594,236 head. The average dressed steer weight was 919 lbs., up 5 lbs. from the prior week.
Fish also reported the average steer weight ties 2022 for the highest in history for the week ended March 2. She continued that heifer carcass weights were 12 lbs. higher than the prior week and 17 lbs. over a year ago.
Boxed beef prices climbed sharply, with the Choice cutout up $4.17 to $310.78 and the Select cutout up $5.43 to $301.69.
Feeder cattle
Feeder cattle were looking for direction from live cattle and followed the week lower. The March contract was down $3.55 to $247.47, and the April contract lost $5.13 to $251.17. The CME Feeder Cattle Index was up 39 cents to $248.46.
Corn futures were lower, with the March contract losing 4 cents to $4.22 and the May contract down a nickel to $4.33.
Colorado: Winter Livestock in La Junta sold 7,102 head on Tuesday. Compared to the previous auction, feeder steers sold mostly $2-7 higher across all weight classes. Feeder heifers sold $1-9 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 778 lbs. sold between $234.50-243, averaging $239.37.
Kansas: Winter Livestock in Dodge City sold 3,804 head on Wednesday. Compared to the last auction, feeder steers and heifers 475-975 lbs. sold steady to $3 lower. However, reputation cattle sold steady to $3 higher. Benchmark steers averaging 777 lbs. sold between $235-250.50, averaging $248.28.
Missouri: Joplin Regional Stockyards in Carthage sold 7,500 head on Monday. Compared to a week earlier, feeder steers and heifers sold steady to $5 higher at the mid-session. Benchmark steers averaging 767 lbs. sold from $245-264, averaging $249.70.
Nebraska: Bassett Livestock in Bassett sold 3,455 head on Wednesday. There was not a recent auction for an accurate comparison. Benchmark steers averaging 727 lbs. sold between $273-288.75, averaging $278.90.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,750 head on Monday. Compared to a week earlier, feeder steers sold mostly steady, with instances of $5 higher on those over 900 lbs. Feeder heifers sold $3-8 higher. Stocker steers and steer calves sold steady to $3 higher. Heifer calves sold $2-5 higher.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 3,542 head on Monday. Compared to the last auction, steers 600-700 lbs. sold mostly steady to $2 higher and 750-950 lbs. traded mostly $4-6 higher. Heifers 400-700 lbs. sold mostly $3-6 higher, 750-800 lbs. traded $1 higher and 850 lbs. were $6 higher. — Charles Wallace, WLJ contributing editor
