“The wholesale beef market, along with the pork and chicken continues toward the heavens,” wrote Cassie Fish of The Beef. On Tuesday, June lean hog futures traded for a brief time higher than the June Live Cattle futures. The Choice cutout climbed over $300 this week, nearly a 33 percent gain from March prices and the second-highest prices reached since the pandemic first affected the market.
Live cattle futures started the week lower but made up some ground with futures trading higher on Wednesday, taking the contract towards its 10-day moving average. The June contract was trading at $115.30 on Monday and settled in at $115.47, gaining $1.05 on Thursday. The August contract finished at $118.47, gaining 75 cents on Thursday.
“The primary fundamental fear influencing June live cattle most likely is that when boxed beef values top this month, packers won’t support cash prices,” Fish wrote on Wednesday. “But how much will cash break? The north is in good shape on front-end supplies. It is the south that still needs to clean up some cattle. Basis will play its role for sure.”
Boxed beef prices continued their ascent, with the Choice cutout trading just under $300 at the beginning of the week and finishing Thursday at $306.37, up $1.59 for the day. The Select cutout was higher $5.57 for the week, closing up $3.28 on Thursday to $289.36.
Cash trade was light to moderate for the week with 52,280 head selling between $117-120 and averaging $119.03. Dressed steers sold between $189-194 averaging 988 lbs. sold for $190.44. On Tuesday in Nebraska, live purchases traded at $118 and dressed purchases traded from $188-190. In the western Corn Belt on Tuesday, live purchases traded from $118-119 and dressed purchases traded from $187-190. On the formula side, 20,000 head averaging 850 lbs. sold for $193.30.
The Fed Cattle Exchange held its weekly online sale on Wednesday, offering 1,951 head with 1,238 head selling for an average of $118.66. Most of the sold animals were from Texas/Oklahoma/New Mexico, with 1,188 head averaging $118.70. Trading was light to non-existent in the other regions.
Slaughter through Thursday totaled an estimated 470,000 head, slightly below last week’s 477,000 head. The USDA reported actual slaughter numbers for the week ending April 24 were 665,029 head.
Feeder cattle
Feeder cattle settled the week lower, with the May contract down $1, trading at $130.47 on Thursday. The August contract was down $3.40 for the week, closing lower $1.82 on Thursday at $143.40. CME’s Feeder Cattle Index was down 21 cents to $132.55 on Thursday.
“It’s utterly painful to look at the cattle market from a cattle feeder’s perspective—all inputs are higher, fat cattle are selling for shameful prices, and yet, slaughter speeds are running at mediocre levels and boxed beef prices are sharply higher,” ShayLe Stewart, DTN livestock analyst, wrote in the Thursday midday comments. “There’s money floating around throughout the market, but it’s not working its way down to the cattle feeders or cow-calf producers.”
Corn markets continued their surge this week amidst concerns about drought in the U.S. and Brazil coupled with six-year-low ending stocks. The May contract was higher 6 cents on Thursday, trading at $7.59 a bushel. The July contract also topped the $7 mark, trading 10 cents higher, closing at $7.18 a bushel.
New Mexico: Roswell Livestock in Roswell sold 1,041 in their auction Monday. Compared to the previous auction, steer calves and feeders sold mostly $3-5 lower. Heifer calves and feeders sold mostly $2-5 lower, except a few 300-400 lbs. sold $4 higher. Benchmark steers averaging 667 lbs. sold between $135-139.
Missouri: Joplin Regional Stockyards in Carthage sold 4,500 head Monday. Compared to the prior sale, feeder steers and heifers traded steady. Benchmark steers averaging 803 lbs. sold between $132.75-134.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head Monday. Compared to the last sale, feeder steers sold $2-3 lower and feeder heifers sold $2-4 lower. Benchmark steers averaging 771 lbs. sold between $129-144.50.
Colorado: Winter Livestock in La Junta sold 1,148 head Tuesday. Compared to the last sale, feeder steers under 700 lbs. sold in a light test steady to $2 lower. Feeder heifers under 700 lbs. sold $3-5 lower. Yearling feeder steers over 700 lbs. were too lightly tested for a market trend, but yearling feeder heifers over 700 lbs. sold $3-5 lower. A group of benchmark steers averaging 652 lbs. sold for $143.
Kansas: Winter Livestock in Dodge City sold 2.728 head on Wednesday. Compared to the last auction, feeder steers 600-950 lbs. sold $2-5 lower. There was no recent comparison on steer calves 400-600 lbs. however, a higher trend was noted. Feeder heifers 550-975 lbs. sold $3-7 lower with no recent comparison on heifer calves 375-500 lbs., however, a lower trend was noted. Benchmark steers averaging 743 lbs. sold for $144.
South Dakota: Hub City Livestock in Aberdeen sold 5,500 head on Wednesday. Compared to the previous auction, steers 800-950 lbs. mainly were steady, 951-1,000 lbs. sold steady to $3 lower. Heifers 900-950 lbs. were steady to $2 higher. Benchmark steers averaging 829 lbs. sold between $130.50-142.
Wyoming: Torrington Livestock in Torrington sold 2,274 head on Wednesday. Compared to the previous sale, steer and heifer calves on load lots and reputation kind traded steady with few instances of $3 higher. Benchmark steers averaging 805 lbs. sold between $135-143. — Charles Wallace, WLJ editor
