The market kicked off the week on a higher note following a bullish Cattle on Feed report, but saw fluctuations over the week thanks to external factors, mostly related to highly pathogenic avian flu (HPAI) updates.
“With more HPAI news surfacing and the futures market electing to react negatively to the virus, cattlemen are more focused on the market’s fundamentals given that the virus isn’t posing significant illness to infected cattle and the CDC continues to say there is little risk to humans,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday closing comments.
Live cattle futures sold higher over the week. The April contract gained nearly $3 to close at $183.95, and the June contract gained $2.43 to close at $177.80.
Cash trade through Thursday totaled about 50,000 head. Live steers sold from $182-186, and dressed steers sold from $292-295.
Cash trade for the week ending April 21 totaled 67,898 head. Live steers averaged $182.74, and dressed steers averaged $292.78.
Slaughter through Thursday totaled 488,000 head, on pace with a week earlier. Projected slaughter for a week earlier is 620,000 head. Actual slaughter for the week ending April 13 was 597,882 head. The average dressed steer weight was 922 lbs., 3 lbs. above the prior week.
Boxed beef prices were slightly lower over the week, but overall sold mostly sideways. The Choice cutout lost 14 cents to close at $295.66, and the Select cutout lost 86 cents to close at $288.41.
“Paying up for cattle will push packer margins further into the red because boxed beef values continue to be stubbornly sluggish,” said Cassie Fish, market analyst, in The Beef on Thursday.
USDA released its latest Cattle on Feed report on April 19, showing total cattle and calves on feed as of April 1 up 1% from a year earlier. Placements were 12% lower at 1.75 million head. Marketings were 14% below a year ago, and other disappearance totaled 8% higher.
Feeder cattle
Feeder cattle futures closed higher over the week. The April contract gained $3.27 to close at $244.87, and the May contract gained $3.70 to close at $246.25.
The CME Feeder Cattle Index gained close to $3 to close at $245.15.
Corn futures were higher, with the May contract up 15 cents to $4.41 and the July contract up 16 cents to $4.52.
“With turn-out season quickly approaching, continuing to watch these feeder cattle sales in the countryside will be insightful as everyone is curious about what the big summertime video sales are going to accomplish,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 6,228 head on Monday. Compared to the last auction, feeder steers sold $3-7 higher. Feeder heifers sold $6-12 higher. Benchmark steers averaging 772 lbs. sold between $237-265, averaging $247.82.
Nebraska: Gordon Livestock in Gordon sold 1,121 head on Tuesday. Due to a lack of a recent sale, an accurate trend could not be given. Benchmark steers averaging 776 lbs. sold for $264.50.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head on Monday. Compared to a week earlier, feeder steers and heifers sold $4-8 higher. Steer and heifer calves were not well tested, but a sharply higher undertone was noted. Benchmark steers averaging 765 lbs. $248-270.50, averaging $260.85. — Anna Miller, WLJ managing editor
