A keen eye was kept on the markets last week, waiting to see if they would recover from the JBS cyberattack that caused disruptions and reduced throughput.
Live cattle futures traded mostly steady all week, closing Thursday with the June contract at $117.57 and the August contract at $118.55.
Cash trade has trended in the same pattern over the past several weeks, with little wiggle room. Live steers have sold mostly in the $118-121 range and dressed steers have traded around the $189-191 mark. Cash trade for the first week of June totaled only 65,689 head. Live steers averaged $119.94 while dressed steers averaged $190.76.
The Fed Cattle Exchange listed 10,170 head in their Wednesday online sale, of which 2,772 head actually sold. Opening prices ranged from $115-119 and high bids ranged from $116-120.
“This is a difficult and complex market to assess, especially when the black swan events occur so frequently that calling them black swan events is a misnomer,” the Cattle Report said in their Monday report. “Some wonder how many more negative impacts can occur directed towards the live producers of cattle.”
Slaughter through Thursday totaled 476,000 head—155,000 head higher than the same time the week earlier, when throughput was greatly reduced. The Saturday slaughter on June 5 was one of the highest Saturday slaughters that has been seen in years. A total of 98,000 head were processed, thanks to plants frantically trying to make up ground from JBS’ lost throughput. Slaughter for the week of Memorial Day and the cyberattack is estimated at only 538,000 head—over 130,000 head below necessary outputs. USDA released actual slaughter data for the week ending May 29, which totaled 630,000 head.
“It’s great that JBS was able to get back online in such a short matter of time, but running at 119,000 to 120,000 head a day doesn’t beckon for a healthy marketplace,” ShayLe Stewart, DTN livestock analyst, remarked. “With consumer demand as robust as it is, and with boxed beef prices as astronomically high as they are, plants have got to find some way of increasing their daily outputs.”
Many are calling boxed beef prices at their peak now, with the Choice cutout sitting at $338.25 and the Select cutout at $310.40 on Thursday afternoon. Cutouts were several dollars lower from the week prior, when prices skyrocketed after the JBS cyberattack.
Feeder cattle
Feeders were moderately lower last week. The August futures contract was at $148.40 and the September contract at $150.90. The CME Feeder Cattle Index trended several dollars higher from the prior Thursday at $139.91. Corn was up about 10 cents over the week, bringing the July contract to just under $7 at $6.99 and the September contract up to $6.38.
“Feeders pray this year’s corn crop is stellar and ample supplies of corn weigh on current prices so feedlots have the opportunity to feed these cattle at more reasonable costs,” Stewart remarked.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head Monday. Compared to the last sale, feeder steers traded steady to $3 higher and heifers sold steady to $3 lower. Benchmark steers averaging 757 lbs. sold for $139.
North Dakota: Due to exceptional drought conditions in the state, ranchers are being forced to cull their herds. Rugby Livestock in Rugby—which usually holds sales every other week now has sales every week—sold 4,204 head on Monday. Benchmark steers averaging 731 lbs. sold for $162.50 and benchmark heifers averaging 774 lbs. sold for $134.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,000 head Monday. Compared to two weeks earlier (the market was closed Memorial Day), feeder steers and heifers sold $3-5 higher. Steer calves sold $4-6 lower and heifer calves sold $3-5 higher. Benchmark steers averaging 768 lbs. sold between $140-151.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,513 head Monday. Compared to two weeks earlier, feeder steers sold $2-7 lower; heifers sold $2-7 lower, except 750-800 lbs. sold $1-3 higher. Benchmark steers averaging 785 lbs. sold between $133-136. — Anna Miller, WLJ managing editor
