The release of the semi-annual Cattle Inventory report propelled live and feeder cattle futures higher as the reduction of herd numbers met analysts’ expectations. Cash trade was again non-existent as packers were playing cool and waiting until Friday.
USDA released the Cattle Inventory report showing all cattle and calves in the U.S. as of Jan. 1, 2023, totaled 89.3 million head, 3% below the 92.1 million head on Jan. 1, 2022. According to the Daily Livestock Report, declines of total cattle were in areas experiencing drought; the most significant decline was in Oklahoma.
Live cattle futures were higher, with the February contract up $3.03 to $159.75 and the April contract up $3.30 to $163.82.
Packers were once again waiting until the end of the week for cash trade because on Thursday 7,000 head had sold for the week. Live steers sold between $153-159, averaging $158.16.
There was not enough trade for a market trend for dressed steers.
Asking prices were $158-160 in the South and $252 plus in the North.
“Cattle owners are pricing cattle sharply higher this week with many sellers not anxious to sell and willing to await the warm-up to recover performance losses,” The Cattle Report wrote on Thursday. “Expect more trade to develop today as short-bought packers scramble to put together next week’s buy.”
Cash trade for the week ending Jan. 29 was 71,178 head. Live steers traded for an average of $155.31, and dressed steers averaged $247.71.
The national weekly direct beef type price distribution for the week of Jan. 23-30 was the following on a live basis:
• Negotiated purchases: $155.63.
• Formula net purchases: $157.88.
• Forward contract net purchases: $160.62.
• Negotiated grid net purchases: $160.98.
On a dressed basis:
• Negotiated purchases: $247.76.
• Formula net purchases: $253.76.
• Forward contract net purchases: $247.50.
• Negotiated grid net purchases: $256.46.
Slaughter through Thursday was expected to be 500,000 head, 4,000 head below the same time the previous week, and estimated to be 659,000 head for the week. Actual slaughter for the week ending Jan. 21 was 647,262 head (steers 44.8%, heifers 30.9%). Dressed steers weights averaged 915 lbs., 1 lb. above the prior week.
Boxed beef prices were mixed, with the Choice cutout down $3.65 to $265.10 and the Select cutout up $2.18 to $253.66. The Choice/Select spread was $11.44 as of Thursday.
Feeder cattle
Feeder cattle rallied after the release of the Cattle Inventory report, with the March contract up $3.07 to $185.92 and the April contract up $3.07 to $190.07. The CME Feeder Cattle Index was up $1.57 to $180.37.
Corn futures were lower, with the March and May contracts down 7 cents to $6.75 and $6.73, respectively.
Colorado: Winter Livestock in La Junta sold 3,107 head Tuesday. Compared to the previous auction, steer calves sold mostly steady. Heifer calves under 550 lbs. sold $5-8 higher, with instances of $10 higher on heifer calves under 500 lbs. Yearling feeder steers sold $2-3 higher. Yearling feeder heifers traded steady to $1 higher. Benchmark steers averaging 678 lbs. sold between $180-188.25, averaging $185.60.
Kansas: Winter Livestock in Dodge City sold 2,681 head Wednesday. Compared to the last auction, feeder steers 700-900 lbs. sold $2-6 higher. Steers 400-700 lbs. sold $10-12 higher. Feeder heifers 600-950 lbs. sold $2-6 higher. Heifers 400-600 lbs. sold $10 higher. Benchmark steers averaging 760 lbs. sold between $175-186.50, averaging $183.03.
Missouri: Joplin Regional Stockyards in Carthage sold 2,961 head Monday. Compared to the last auction, feeder steers traded $6-10 higher. Feeder heifers traded steady to $4 higher. Benchmark steers averaging 772 lbs. sold for $181.00.
Nebraska: Bassett Livestock in Bassett sold 4,150 head Wednesday. Compared to the last auction, 650 and 750 lbs. steers traded $8-9 higher, and heifers 550-650 lbs. traded steady to $12 higher. Benchmark steers averaging 762 lbs. sold between $183.75-197.25, averaging $192.62.
New Mexico: Roswell Livestock in Roswell sold 1,248 head Monday. Compared to the last auction, steer calves 400-500 lbs. sold unevenly steady to $2 higher, while 500-600 lbs. steers were steady. Heifer calves 400-500 lbs. traded $5-6 higher, with 500-600 lbs. calves trading $7-8 higher. Feeder steers 600-700 lbs. sold $5-6 higher. Benchmark steers averaging 630 lbs. sold between $174-188, averaging $183.72.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 2,750 head Monday. A winter storm hampered sales, and as a result, steer and heifer sales were not well tested. Benchmark steers averaging 720 lbs. sold between $181-190 and averaged $182.89.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,011 head Monday. Compared to the previous auction, feeder steers 649 lbs. and under, sold steady to $3 higher, and 650 lbs. and higher were steady to $3 lower. Feeder heifers 400-450 lbs. sold $3-4 higher, and over 450 lbs. traded steady to $4 lower. Benchmark steers averaging 726 lbs. sold between $178-187 and averaged $183.99. — Charles Wallace, WLJ editor
