Steer and heifer calves sold steady to $5 higher, according to the Agricultural Marketing Service (AMS). Feeder steers and heifers sold steady to $5 lower.
“Buyers were more reserved on feeders headed straight to the feedyard as the CME futures markets were volatile all week long, however, demand was good to very good on calves suitable for grazing,” AMS analysts said.
Feeder Cattle futures closed an average of $2.51 lower across the front half of the board, week to week on Friday and then an average of 93¢ lower.
“It would appear another challenging time is quickly approaching as it relates to markets and cattle prices,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “The 2018 feeder cattle market started off on a strong note as feeder cattle futures made $10-$12 gains on most contracts, local cash prices increased $10 on feeder cattle and as much as $15/cwt. on calves. The calf and feeder cattle market price swing to the upside was largely due to strong finished cattle prices, which meant cattle feeders had more dollars to spend on cattle to refill the pen. However, many of those pens may be occupied by cattle that came off wheat pasture early and those that would have normally gone to wheat pasture but never had the opportunity. Thus, the weakness that was present in the market this week could be a factor of both reduced finished cattle prices and reduced pen space at some feedlots.”
Negotiated cash fed cattle trade was generally $1-$2 lower than the previous week at $126-$127 in the Southern Plains and Nebraska. Dressed trade was $1-$2 lower at $203-$204.
Except for 37¢ higher in away Jun, Live Cattle futures closed an average of $1.28 lower week to week on Friday (from 22¢ lower at the back to $2.67 lower in spot Apr).
Choice boxed beef cutout value was $4.15 higher week to week on Friday at $222.52/cwt. Select was $1.82 higher at $214.64.
“Most of the support in the week’s price increase came from the rib primal, which gains interest during grilling season,” Griffith explained. “The spring market could very well be in play as retailers make purchases gearing up for the grilling season. If some of these purchases are in fact grilling-season purchases, then retailers and restaurants must think wholesale beef prices could continue moving higher in the next couple of months, which would be the seasonal tendency for rib and loin cuts.”
On the other hand, AMS analysts noted, “With boxed beef values higher, and with Easter fast approaching, beef could find some stiff competition from the retail section with cheaper pork and poultry prices. “Feedyards will need to continue to stay current to keep a significant price drop at bay…”
Friday to Friday Change*
Weekly Auction Receipts
|
Receipts Mar. 02 |
Auction (head) (Change) |
Direct (head) (Change) |
Video/net (head) (Change) |
Total (head) (Change) |
|
227,800 (+5,700) |
44,200 (-700) |
300 (-38,700) |
272,300 (-33,700) |
CME Feeder Index
| CME Feeder Index | Mar. 1 | Change |
| $146.03 | – 1.60 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Mar. 2 | Change |
| 600-700 lbs. | $173.10 | – $0.30 |
| 700-800 lbs. | $154.92 | – $3.17 |
| 800-900 lbs. | $143.36 | – $3.39 |
South Central
| Steers-Cash | Mar. 2 | Change |
| 500-600 lbs. | $180.89 | + $1.76 |
| 600-700 lbs. | $163.65 | + $1.01 |
| 700-800 lbs. | $147.29 | – $2.26 |
Southeast
| Steers-Cash | Mar. 2 | Change |
| 400-500 lbs. | $183.73 | + $5.29 |
| 500-600 lbs. | $168.93 | + $5.04 |
| 600-700 lbs. | $153.89 | + $2.86 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Mar. 2 ($/cwt) | Change |
| Choice | $222.52 | + $4.15 |
| Select | $214.64 | + $1.82 |
| Ch-Se Spread | $7.88 | + $2.33 |
Futures
| Feeder Cattle | Mar. 2 | Change |
| Mar | $143.675 | – $2.325 |
| Apr | $145.275 | – $3.225 |
| May | $146.525 | – $2.850 |
| Aug | $150.775 | – $1.650 |
| Sep | $151.175 | – $1.100 |
| Oct | $150.900 | – $1.000 |
| Nov | $150.075 | – $0.850 |
| Jan ’19 | $145.225 | – $0.750 |
| Live Cattle | Mar. 2 | Change |
| Apr | $122.175 | – $2.675 |
| Jun | $114.400 | – $2.400 |
| Aug | $112.100 | – $1.600 |
| Oct | $114.650 | – $0.975 |
| Dec | $116.925 | – $0.675 |
| Feb ’19 | $117.550 | – $0.425 |
| Apr | $117.375 | – $0.225 |
| Jun | $111.225 | + $0.375 |
| Aug | $110.050 | n/a |
| Corn futures | Mar. 2 | Change |
| Mar | $3.772 | + $0.110 |
| May | $3.852 | + $0.108 |
| Jul | $3.924 | + $0.102 |
| Sep | $3.976 | + $0.084 |
| Dec | $4.042 | + $0.070 |
| Mar ’19 | $4.112 | + $0.066 |
| Oil CME-WTI | Mar. 2 | Change |
| Apr | $61.25 | – $2.30 |
| May | $61.09 | – $2.32 |
| Jun | $60.78 | – $2.32 |
| Jul | $60.36 | – $2.31 |
| Aug | $59.87 | – $2.29 |
| Sep | $58.36 | – $3.25 |
Equities
| Equity Indexes | Mar. 2 | Change |
| Dow Industrial Average | 24538.06 | – 771.93 |
| NASDAQ | 7257.87 | – 79.52 |
| S&P 500 | 2691.25 | – 56.05 |
| Dollar (DXY) | 89.98 | + 0.10 |