It was a volatile week for cattle markets as reports that beef import tariffs could be waived sparked market reaction before the plans were paused the following day, with cattle futures ultimately closing lower despite stronger cash trade.
“The market appears to be anticipating that more bearish news is coming—after all, the word delayed was used—between now and the mid-term elections and that beef prices won’t stay outside of the rhetoric,” wrote Cassie Fish, market analyst, in The Beef on Tuesday.
Live cattle futures were lower on the week, with the June contract down $1.40 to $252.07 and the August contract $2.75 to $246.15.
Cash trade through Thursday was 68,000 head. Live steers sold for $260-266, and dressed steers sold for $405-415.
Cash trade for the week ending May 10 was 107,454 head. Live steers averaged $258.35, and dressed steers averaged 402.05.
“Northern dressed deals have traded in a range of $400-410, mostly $405-410, $2-7 higher than last week’s weighted averages,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments. “Southern live deals have had a range of $260-265, mostly $260-262, $3-5 higher than the prior week’s weighted averages. But thanks to the continued efforts of feedlot managers, the market is witnessing a true rally in the cash market, where price discovery is the main theme of this bullish run.”
Slaughter through Thursday is estimated to be 426,000 head. Last week’s estimated slaughter is 527,000 head. Actual slaughter for the week ending May 2 was 531,029 head. The average steer dressed weight was 978 lbs. Total beef production for the week ending May 9 was 473.8 million lbs., down 1.4% from the prior week.
Boxed beef prices were lower, with the Choice cutout down $2.17 to $387.45 and the Select cutout 63 cents lower to $389.
“Retail beef price data was released yesterday afternoon and is grabbing headlines, with all-fresh beef unchanged at $9.64/lb., up 13.4% above a year ago,” Fish wrote on Wednesday. “Price inflation is rampant right now, driven by the energy price spike and services inflation. So beef isn’t alone.”
Feeder cattle
Feeder cattle futures were also lower, with the May contract down $4.83 to $367.57 and the August contract $15.05 lower to $358.
The CME Feeder Cattle Index was down $2.10 to $373.23
Corn futures were lower, with the May contract down 13 cents to $4.51 and the July contract 7 cents lower to $4.67.
Kansas: Winter Livestock in Dodge City sold 3,091 head on Wednesday. Compared to the last auction, steers and heifers over 550 lbs. sold steady, with a strong undertone noted. Steers and heifers under 550 lbs. sold $20 higher to sharply higher. Benchmark steers averaging 761 lbs. sold for $364-388, averaging $376.91.
Missouri: Joplin Regional Stockyards in Carthage sold 11,343 head on Monday. Compared to the last auction, feeder steers sold from $3 higher to $10 lower in uneven sales. Feeder heifers sold from $7 higher to $10 lower, also in uneven sales. Benchmark steers averaging 701 lbs. sold for $400-405 and averaged $402.73.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,237 head on Monday. Compared to the last auction, feeder steers sold $5-10 lower. Feeder heifers sold steady to $5 lower. Steer and heifer calves were not well tested, with very limited sales $10-20 lower. Benchmark steers averaging 786 lbs. sold for $360-384 and averaged $367.57.
South Dakota: Sioux Falls Regional in Worthing sold 5,675 head on Monday. Compared to the last auction, feeder steers and heifers sold $2-5 higher, and $15-20 higher on a very attractive long string of steers 1,000- 1,050 lbs. Benchmark steers averaging 725 lbs. sold for $390-439, averaging $411.94. — Charles Wallace, WLJ contributing editor
