With more cases of the newly coined bovine influenza A virus popping up all over the country, traders are hesitant to move the market higher.
Live cattle futures fell over the week. The April contract lost $2.40 to close at $179.07, and the June contract lost $3 to close at $172.85.
“Today’s complex can’t seem to shake the bearish weight sucking the air out of the live cattle market,” wrote ShayLe Stewart, DTN livestock analyst, in her midday Thursday comments. “There has been another case of HPAI in some dairy cattle in North Carolina which seems to be today’s biggest troubling factor. States with confirmed cases are North Carolina, Texas, Kansas, Michigan, Idaho, New Mexico and Ohio.”
The bulk of cash trade took until the end of the week to take place. Through Thursday afternoon, less than 35,000 head sold, selling a dollar or two less than a week earlier. Live steers sold from $182-185.50, and dressed steers sold from $288-295.
Cash trade through April 7 totaled 79,999 head. Live steers averaged $185.89, and dressed steers averaged $297.11.
The national weekly direct beef type price distribution for the week of April 1-8 was the following on a live basis:
• Negotiated purchases: $186.04.
• Formula net purchases: $191.12.
• Forward contract net purchases: $196.75.
• Negotiated grid net purchases: $190.65.
On a dressed basis:
• Negotiated purchases: $296.97.
• Formula net purchases: $302.15.
• Forward contract net purchases: $303.39.
• Negotiated grid net purchases: $301.54.
Slaughter through Thursday was estimated at 482,000 head, about 12,000 head more than a week earlier. Expected total slaughter for the week earlier is projected at 609,000 head. Actual slaughter for the week ending March 30 was 582,209 head. The average steer dressed weight was 923 lbs., 1 lb. below the prior week.
“Boxed beef prices have struggled this week, perhaps last week’s larger-than-a-year-ago beef production for the first time in 2024 proved too much,” wrote Cassie Fish, market analyst, in The Beef, on Thursday. “This week’s production cuts were thought to offer some support, but so far, not really.”
Boxed beef prices sold mostly sideways. The Choice cutout lost $1.22 to close at $298.37, and the Select cutout lost 90 cents to close at $295.15.
The Livestock Marketing Information Center projects the upcoming Cattle on Feed report on April 19 to show cattle on feed as of April 1 up about 2%. With two less marketing days in March, analysts project marketings to be down 12% from a year earlier. Placements are expected to be just 92% of last year.
Feeder cattle
Feeder cattle futures also closed several dollars lower over the week. The April contract lost about $4.40 to close at $238.27, and the May contract lost more than $7 to close at $236.52.
The CME Feeder Cattle Index lost more than $6 to close at $243.65.
Corn futures sold mostly sideways. The May contract lost a penny to close at $4.43, and the July contract lost 2 cents to close at $4.45.
“Yes, corn prices are trading slightly lower, but that’s not enough to currently shake the market’s bearish tone in the cattle sector,” Stewart said.
Colorado: Winter Livestock in La Junta sold 3,697 head on Tuesday. Compared to the last auction, feeder steers under 550 lbs. sold $3-16 higher. Feeder steers over 550 lbs. sold $1-3 lower. Feeder heifers sold $4-10 higher across all weight classes. Benchmark steers averaging 770 lbs. sold between $229-239, averaging $234.39.
Kansas: Winter Livestock in Dodge City sold 1,700 head on Wednesday. Compared to the last auction, steer calves were not well tested. Steers weighing 700-900 lbs. sold $1-4 higher and over 900 lbs. sold steady to weak. Heifers were not well tested today, but a lower undertone was noted. Benchmark steers averaging 727 lbs. sold between $259-264, averaging $261.05.
Missouri: Joplin Regional Stockyards sold 5,000 head on Monday. Compared to the week prior, feeder steers and heifers sold $4-10 lower in early sales. Benchmark steers averaging 713 lbs. sold from $252-267.50, averaging $253.88.
New Mexico: Roswell Livestock in Roswell sold 746 head on Monday. Due to a small amount of sales last week, an accurate comparison could not be made. A group of steers averaging 720 lbs. sold between $232-260, averaging $238.91.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,800 head on Monday. Compared to a week earlier, feeder steers and heifers sold $8-12 lower at the mid-session. Steer and heifer calves sold $10-15 lower. Demand was moderate. Benchmark steers averaging 774 lbs. sold from $228-245, averaging $239.10.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 3,681 head on Monday. Compared to the last auction, there were a limited number of light steers for an accurate comparison. Steers 800-850 lbs. sold sharply lower, 900 lbs. traded $9 lower and 950 lbs. were $3 lower. Heifers 600 lbs. sold $13 lower, 650-700 lbs. traded steady to $2 lower, 750 lbs. were sharply lower and 800 lbs. sold $9 lower. Benchmark steers averaging 714 lbs. sold between $265-290, averaging $274.80.
Texas: Lonestar Stockyards in Wildorado sold 862 head on Tuesday. There were not enough comparable sales of feeder steers and heifers for an accurate comparison. A group of steers averaging 710 lbs. sold for $241. — Anna Miller, WLJ managing editor
