Cattle futures posted strong gains over the week before heading into the Easter holiday weekend.
“Following the aggressive market gains earlier in the week, traders seem to be still optimistic, but much less aggressive as the week comes to a close,” DTN wrote in its Thursday midday comments.
Live cattle futures found gains over the week, gaining about $10 to close at $246.20 on the April contract and $246.32 on the June contract. The futures market was set to be closed April 3 in observance of Good Friday.
“The potential for firming cash cattle trade and firming beef values will continue to be watched significantly over the next couple of weeks, but currently, traders seem to be comfortable with current positions and willing to keep markets within a narrow to moderate range through the end of the week,” DTN wrote.
Cash trade through Thursday totaled about 16,000 head. Live steers sold from $240-245, and dressed steers sold from $380-385. Cash trade for the week ending March 29 totaled 56,817 head. Live steers averaged $236.14, and dressed steers averaged $371.82.
“It’s likely a combination of things that have jolted futures higher,” Cassie Fish, market analyst in The Beef, wrote on Monday. “For one, packers’ willingness to pay steady with last week’s cash, despite a boxed beef market that was struggling certainly is one factor.”
Slaughter through Thursday totaled about 429,000 head, compared to 412,000 head a week earlier. Total slaughter for a week earlier is projected at 520,000 head. Actual slaughter for the week ending Mar. 21 was 502,062 head. The average steer dressed weight was 984 lbs., down 5 lbs. from the prior week.
“The slaughter comparison reached a record spread year to year and brings into question some data regarding the on feed numbers,” wrote the Cattle Report on Thursday. “During this past week, Choice cuts went discount to Select cuts, making it difficult for beef producers to earn premiums on high-grading cattle.”
The JBS strike at the Greeley, CO, beef plant continued over the week.
Boxed beef prices traded mixed, up about 30 cents on the Choice cutout to $389.58 and down about $4 on the Select cutout to $387.70.
Feeder cattle
Feeder cattle futures also found tremendous gains over the week. The April contract gained about $17 to close at $372.90, and the May contract gained about $19 to close at $370.62.
“With markets closed Friday and a long holiday weekend approaching, limited new buyer interest is seen Thursday morning, allowing for some end-of-the-week position-taking and market squaring activity,” DTN wrote.
The CME Feeder Cattle Index gained about $5 to close at $366.82.
Corn futures traded lower, losing about 15 cents on the May contract to $4.52 and about 15 cents on the July contract to $4.63.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head on Monday. Feeder steers under 475 lbs. sold $10-35 lower, and steers over 475 lbs. sold $5-20 higher. Feeder heifers sold from $6 lower to $10 higher. Benchmark steers averaging 773 lbs. sold from $364-389, averaging $380.33.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold $4-8 higher. Steer and heifer calves sold mostly steady. Benchmark steers averaging 775 lbs. sold from $358-377, averaging $370.13.
South Dakota: Sioux Falls Regional in Worthing sold 4,000 head on Monday. Compared to a week earlier, feeder steers under 600 lbs. sold with higher undertones, and over 600 lbs. sold mostly steady, except 950-1,000 lbs., which sold $10 higher. Feeder heifers under 850 lbs. sold mostly steady, while over 850 lbs. sold $7-10 higher. — Anna Miller Fortozo, WLJ managing editor
