The trading week was a day shorter due to the Presidents Day holiday, and feeders found their momentum on the board. Fed cattle sales remain inactive until later in the week.
Live cattle futures continue to trade mostly sideways. The February contract gained 10 cents to close at $183.50, and the April contract gained 95 cents to close at $186.55.
“Early strength in CME cattle futures and bullish cattle feeders had many expecting negotiated fed cattle will trade higher than last week, some thinking a couple of bucks higher,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “At the same time, big slaughter schedule cuts this week, with more slated for next week, cast a more limiting, if not bearish, light on the market outlook.”
Cash trade was slow to get started over the week. As of Thursday afternoon, less than 2,500 head had sold. Live steers sold from $180-182, and dressed steers sold for $285.
“No significant trade has been reported yet and bids may be cautious ahead of Friday’s on-feed report,” wrote Todd Hultman, DTN lead analyst, in his Thursday midday comments.
Cash trade through Feb. 18 totaled 88,336 head. Live steers averaged $180.41, and dressed steers averaged $286.75.
The national weekly direct beef type price distribution for the week of Feb. 12-19 was the following on a live basis:
• Negotiated purchases: $180.35.
• Formula net purchases: $182.75.
• Forward contract net purchases: $189.95.
• Negotiated grid net purchases: $181.46.
On a dressed basis:
• Negotiated purchases: $287.16.
• Formula net purchases: $289.29.
• Forward contract net purchases: $288.95.
• Negotiated grid net purchases: $283.10.
Slaughter through Thursday is projected at 472,000 head. Total slaughter for a week earlier is estimated at 608,000 head. Actual slaughter for the week ending Feb. 10 was 617,013 head. The average steer dressed weight was 912 lbs., 3 lbs. higher than the previous week.
“Overall, the U.S. economy has been supportive of continued beef demand at the retail counter as boxed beef prices have rebounded since early January,” Hultman said.
Boxed beef prices traded mixed over the week. The Choice cutout gained $4.49 to close at $299.79, and the Select cutout lost $2.18 to close at $285.81.
Feeder cattle
Feeder cattle futures were several dollars higher over the week. The March contract gained nearly $5 to close at $252.05, and the April contract gained about $6.50 to close at $256.70.
“The rebound from early December continues to push prices higher as calves are in short supply in 2024 and there isn’t much evidence of beef cows being held back from slaughter yet, extending last week’s loss to their lowest prices since February,” Hultman said.
The CME Feeder Cattle Index lost 44 cents to close at $244.49.
Corn futures continue to decline, with the March contract down 11 cents to $4.06 and the May contract also down 11 cents to $4.18.
Colorado: Winter Livestock in La Junta sold 2,736 head on Tuesday. Compared to the previous auction, feeder steers under 550 lbs. sold mostly $1-2 lower, while steers over 550 lbs. sold mostly $5-6 higher. Feeder heifers sold mostly $2-12 higher, with instances of sharply higher across all weight classes. Benchmark steers averaging 709 lbs. sold between $244-258, averaging $254.51.
Iowa: Russell Livestock in Russell sold 4,616 head on Monday. Compared to the last auction, steers sold mostly $3-14 lower, except 800-850 lbs. steers sold $4 higher. Heifers sold steady to $13 higher. Benchmark steers averaging 779 lbs. sold between $229-259.75, averaging $251.46.
Kansas: Winter Livestock in Dodge City sold 2,883 head on Wednesday. Compared to the last auction, steer and heifer calves under 600 lbs. sold $10-15 higher. Feeder steers 600-800 lbs. sold unevenly steady, while those over 800 lbs. sold $1-3 higher. Heifers over 700 lbs. sold $1-4 higher. Benchmark steers averaging 771 lbs. sold between $235-250.25, averaging $ 247.24.
Missouri: Joplin Regional Stockyards in Carthage sold 13,500 head on Monday. Compared to a week earlier, feeder steers and heifers sold mostly steady to $3 higher. Benchmark steers averaging 766 lbs. sold from $232-248, averaging $243.89.
Montana: Miles City Livestock Commission in Miles City sold 985 head on Tuesday. There were not enough sales in the last auction for an accurate comparison. A group of steers averaging 736 lbs. sold between $253-263, averaging $261.58.
Nebraska: Tri-State Livestock in McCook sold 3,881 head on Monday. Compared to the last auction, steers sold $3-12 higher, except 700 lbs. were $8 lower. Heifers traded $1-11 higher. Benchmark steers averaging 731 lbs. sold between $248-260, averaging $256.47.
New Mexico: Roswell Livestock in Roswell sold 1,518 head on Monday. Compared to the most recent auction, steer calves 350-450 lbs. sold $15-18 higher, while 450-550 lbs. sold steady to $2 higher. Feeder steers 600-750 lbs. sold $10-17 higher. Heifer calves 300-400 lbs. sold $10-19 higher, 400-500 lbs. were sharply higher, 500-550 lbs. sold $3 higher and 550-600 lbs. sold $17 higher. Feeder heifers 600-650 lbs. sold $4 higher, and 650-700 lbs. sold $12 lower. A group of steers averaging 785 lbs. sold for $237.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 12,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold fully steady. Steer and heifer calves that were weaned with multiple rounds of shots sold mostly $1-3 higher. Benchmark steers averaging 769 lbs. sold from $243-246, averaging $244.63.
South Dakota: Sioux Falls Regional Cattle in Worthing sold 5,881 head on Monday. Compared to the last auction, light steers 550-750 lbs. sold mostly $4-6 higher. Heavier steers 800-900 lbs. traded $1-4 higher. Heifers 550-700 lbs. sold $1-5 higher. Heavier heifers 750-850 lbs. traded steady to $1 higher. Benchmark steers averaging 730 lbs. sold between $252-275, averaging $267.75.
Texas: Lonestar Stockyards in Wildorado sold 1,259 head on Tuesday. Compared to the last auction, feeder steers and heifers traded $4 higher on comparable sales. There were not enough comparable sales on steer and heifer calves due to last week’s light test but a sharply higher undertone was noted. Benchmark steers averaging 782 lbs. sold between $240.25-243, averaging $241.34. — Anna Miller, WLJ managing editor
