The Russia/Ukraine war continues to cast uncertainty over the marketplace and world, and the cattle market has responded accordingly.
“The two sides of the warring factions met and formally announced they were unable to negotiate a ceasefire of anything short of total surrender by Ukraine,” said the Cattle Report. “This sent grain higher and cattle lower.”
Live cattle futures sank lower over the week. The April contract lost $2.44 to close at $135.90, and the June contract lost $2.70 to close at $132.45. (Editor’s note: The April contract closed at $138.34 on March 3; not the previously reported $135.15.)
“After a two day rally back to the 10-day moving average, the downtrend in CME cattle futures has definitely resumed,” wrote Cassie Fish, market analyst, in The Beef. “Wednesday’s close was lousy and today’s close was worse.”
Cash trade through Thursday morning totaled about 78,500 head. While volume was up from earlier weeks, prices were several dollars lower. Live steers sold between $136-140, and dressed steers sold between $218-222.
Cash trade the first week of March totaled 75,674 head, with 70 percent of the contracts for nearby delivery. Live steers averaged $140.64 (down $2.53), and dressed steers averaged $224.58 (down $2.60).
The national weekly direct beef type price distribution for the week of Feb. 28 to March 7 was the following on a live basis:
• Negotiated purchases: $140.84.
• Formula net purchases: $144.88.
• Forward contract net purchases: $143.34.
• Negotiated grid net purchases: $143.71.
On a dressed basis:
• Negotiated purchases: $224.65.
• Formula net purchases: $228.51.
• Forward contract net purchases: $217.67.
• Negotiated grid net purchases: $225.64.
Slaughter through Thursday totaled about 499,000 head—several thousand head more than a week earlier. The first week of March’s slaughter is projected at 658,000 head. Actual slaughter through the last week of February totaled 650,644 head.
“Even with a plant dark tomorrow and Saturday for cooler cleaning, this week’s throughput is solid,” Fish said on Thursday.
Boxed beef prices are getting closer to bottoming, with the Choice cutout down just 41 cents to $243.94 and the Select cutout down 42 cents to $247.37. The Choice/Select spread was $6.57.
“Beef net export sales of 27,500 metric tons (mt) for 2022—a marketing year high—were up 16 percent from the previous week and 36 percent from the prior four-week average,” said ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments. “The three largest buyers were China (10,400 mt), Japan (6,400 mt) and South Korea (3,700 mt).”
Feeder cattle
“The cat and mouse game between grain prices and the feeder cattle complex is intense as the feeder cattle contracts are receiving no support from the live cattle sector,” Stewart said. “Not only is the feeder cattle market seeing its futures complex driven lower by input cost concerns, but throughout the countryside, buyers are extremely leery of buying any feeders/calves as the market is too volatile to gamble with any risk.”
Feeder cattle futures plummeted over the week. The March contract lost $4.70 to close at $151.65, and the April contract lost $4.27 to close at $156.25. The CME Feeder Cattle Index lost $4.72 to close at $153.06.
Corn futures bounced around over the week but ultimately closed higher. The March contract gained 6 cents to close at $7.57, and the May contract gained 8 cents to close at $7.55.
Colorado: Winter Livestock in La Junta sold 4,531 head on Tuesday. Compared to a week earlier, steers under 750 lbs. sold $8-10 higher, with instances of $15 higher; over 750 lbs. sold $3-5 higher. Heifers under 700 lbs. sold steady to $2 higher, except 500-600 lbs., which sold $5-8 higher. Heifers over 700 lbs. sold $2 lower.
Kansas: Winter Livestock in Dodge City sold 3,785 head on Wednesday. Compared to the previous sale, feeder steers 700-975 lbs. sold steady to $2 lower, and steer calves 400-700 lbs. sold $10 lower. Feeder heifers 700-900 lbs. sold $2-3 lower, heifers 600-700 lbs. sold steady to $2 higher and heifer calves 400-600 lbs. sold $10-12 lower.
Missouri: Joplin Regional Stockyards in Carthage sold 10,000 head by midday trading Monday. Feeder steers and heifers under 550 lbs. traded $10-15 lower. Joplin reported there were not enough heavier cattle yet for a trend. Benchmark steers averaging 728 lbs. sold for $158.
New Mexico: Roswell Livestock Auction in Roswell sold 707 head on Monday. There were no recent sales to compare to. Benchmark steers averaging 775 lbs. sold between $136-145.50, averaging $142.34.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 11,000 head by mid-session Monday. Feeder steers sold $4-6 lower. Feeder heifers traded $5-8 lower. Steer and heifer calves were lightly tested, but a lower undertone was noted. Benchmark steers averaging 767 lbs. sold between $145-155, averaging $150.65.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,358 head Monday. Compared to a week earlier, feeder steers 550 lbs. and below sold $11-14 lower, 600-800 lbs. sold $5-9 lower, 800-900 lbs. sold $3-4 lower and 900-950 lbs. sold $8-9 lower. Feeder heifers under 600 lbs. sold $7-11 lower, 600-750 lbs. sold steady to $3 lower and 750-950 lbs. sold $5-9 lower. Benchmark steers averaging 730 lbs. sold between $156.75-166.50, averaging $159.72. — Anna Miller, WLJ managing editor
