It was a topsy-turvy week for the cattle complex, with feeder cattle storming off $5 higher to start the week. Live cattle closed mostly sideways after beginning the week trading triple digits higher.
Live cattle closed relatively unchanged, with the June contract lower by 13 cents to $133.77 and the August contract lower 33 cents to $136.02.
Cash trade developed mainly on Wednesday, with about 103,000 head sold through Thursday. Trade was primarily steady compared to the previous week. Live cattle sold between $140-150, averaging $143.34, and dressed trade was between $229-234 and averaged $231.56.
“The market continues to trade in a sideways chopping manner as the market balances the constraints of resistant/support levels and a teetering cash market,” ShayLe Stewart, DTN livestock analyst, wrote in the Wednesday closing comments. “Northern dressed cattle sold for mostly $232, and Southern live cattle sold for mostly $140—both of which are steady with last week’s business. Of the cattle that sold in the North some are committed for next week’s delivery, and others are committed for the weeks of May 16 and May 23, which again is a move made by packers to strategically manage their inventory and keep them from having to dive into the cash market in the weeks ahead.”
Cash trade through the last week of April totaled a whopping 135,487 head. Live steers averaged $143.53, and dressed steers averaged $232.42.
The national weekly direct beef type price distribution for the week of April 25 to May 2 was the following on a live basis:
• Negotiated purchases: $143.53.
• Formula net purchases: $144.52.
• Forward contract net purchases: $144.79.
• Negotiated grid net purchases: $141.48.
On a dressed basis:
• Negotiated purchases: $232.50.
• Formula net purchases: $227.26.
• Forward contract net purchases: $224.99.
• Negotiated grid net purchases: $224.23.
Slaughter through Thursday totaled 487,000 head, 9,000 head below the prior week’s pace. Total slaughter for the week is projected to be 650,000 head.
The Cattle Report wrote that slaughter for the week ending April 30 was revised downward from 656,000 head to 649,000 “as packers manage the size of the slaughter to provide some stability to the cutout prices.”
Actual slaughter for the week ending April 23 was 664,070 head. Steer carcass weights were 906 lbs. USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 80.9 percent and dressed weights lower to 870.5 lbs.
Boxed beef prices were lower; the Choice cutout was down $7.42 to close at $255.18, and the Select cutout was lower $5.25 to close at $245.81.
USDA’s Weekly Export report for the April 22-28 period showed net sales of 14,600 metric tons (mt), up 28 percent from the previous week and 1 percent from the prior four-week average. Exports were 20,300 mt, up 16 percent from the previous week and 7 percent from the prior four-week average. The destinations were primarily Japan (6,600 mt), South Korea (5,000 mt), China (3,200 mt), Taiwan (1,300 mt) and Mexico (1,100 mt).
Feeder cattle
Feeder cattle closed higher after rallying on Monday. The May contract was up $2.27 to close at $160.32, and the August contract was higher $3.97 to close at $174.37. The CME Cattle Feeder Index was down 77 cents to $155.59.
“Cattle sold in the summer months will report large losses at these price levels. The market is forecasting the brunt of the price declines will fall on the live cattle owners, but look for changing leverage between cattle owners and processors to change the sharing of those price declines,” wrote the Cattle Report.
Corn contracts closed lower on the news of a wet forecast in the Corn Belt. The May contract lost 13 cents to close at $8.03, and the June contract was down 16 cents to $7.97.
USDA’s Crop Progress report showed that 14 percent of the corn crop was planted. That is up from 7 percent last week but still trails the five-year average of 33 percent.
Colorado: Winter Livestock in La Junta sold 1,370 head Tuesday. Compared to the last auction, feeder steers and heifers under 700 lbs. traded $3-5 higher, and over 700 lbs. were too lightly tested for a comparison. Benchmark steers averaging 721 lbs. sold for $156.
Kansas: Winter Livestock in Dodge City sold 1,962 head on Wednesday. Compared to a week earlier, feeder steers 700-950 lbs. sold $2-3 higher, and while there was no recent comparison on steers weighing 950-1,100 lbs., a higher trend was noted. Steer calves 500-700 lbs. sold $8-9 higher. Feeder heifers 700-925 lbs. sold $2-4 higher, and heifer calves 500-700 lbs. sold $4-6 lower. Benchmark steers averaging 722 lbs. sold between $173-174, averaging $173.49.
Missouri: Joplin Regional Stockyards in Carthage sold 6,495 head on Monday. Compared to the last auction, feeder steers under 650 lbs. traded $4-6 lower, with heavier weights trading steady to $2 higher. Feeder heifers under 600 lbs. sold $3-7 lower, with heavier weights trading steady. Benchmark steers averaging 726 lbs. sold between $157-169.50, averaging $164.43.
New Mexico: Clovis Livestock in Clovis sold 1,313 head Wednesday. Compared to the previous auction, yearling steers and heifers sold $2-3 higher. Calves were not well tested this week for an adequate trend. Benchmark steers averaging 776 lbs. sold between $155.50-155.60, averaging $155.59.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,762 head on Monday. Compared to the previous auction, feeder steers and heifers sold steady to $2 higher. Steer and heifer calves sold unevenly steady, but not all weights were well tested. Benchmark steers averaging 727 lbs. sold between $159-170, averaging $166.27.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 1,032 head on Monday. Compared to a week earlier, feeder steers and heifers sold with higher undertones. Demand for the light offering was good. Benchmark steers averaging 780 lbs. sold between $167-170, averaging $168.06. — Charles Wallace, WLJ editor
