Cattle feeders and packers continued their standoff through late Friday afternoon, with negotiated cash fed cattle trade undeveloped, according to USDA reports. However, according to AMS, there was a smattering of dressed sales in the Northern Plains at $197/cwt., which was $2 more than the previous week.
Adverse pen conditions and another winter storm over the weekend point to continued erosion in feedlot performance and more price leverage for cattle feeders.
Cattle futures closed near steady Friday, maintaining week-to-week gains as traders waited cash direction.
Except for 17¢ lower in June, Live Cattle futures closed an average of 15¢ higher.
Except for 7¢ and 12¢ higher in April and May, Feeder Cattle futures closed an average of 33¢ lower.
Corn futures closed mostly 2¢ higher.
Soybean futures closed 3¢ to 4¢ higher.
Wholesale beef values were lower on light demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.50 lower Friday afternoon at $212.46/cwt. Select was $1.50 lower at $206.27.
Major U.S. financial indices edged slightly lower Friday amid persistent concerns about the partial government shutdown and the lack of trade resolution with China.
The Dow Jones Industrial Average closed 5 points lower. The S&P 500 closed fractionally lower. The NASDAQ was down 14 points.
Impacts from muddy feedlot pens and winter weather continue to cut both ways in the market.
“Heavy rain and snow has most of the trade area in very muddy conditions and these conditions are discouraging calf buyers from buying at this time,” according to the Agricultural Marketing Service (AMS) reporter on hand for Monday’s auction at Oklahoma National Stockyards.
Between demand pressure and heavy post-holiday volume, steers and heifers sold from $4/cwt. lower to $1 higher last week, according to the Agricultural Marketing service (AMS).
Heading into the weekend, a wide swath of the nation was gearing up for Winter Storm Gia
“Feedyards that were already wet will see more moisture fall from the sky, dashing any hopes that they will dry out anytime soon. Said AMS analysts on Friday. “Muddy feedyards in Kansas, Nebraska and Iowa want to get cattle moved out of the poor pen conditions, as cattle performance has been seriously impeded due to above average moisture recently.”
Lost pounds to weather are supporting Cattle futures and the uptick in cash fed cattle prices. On the other hand, costs are increasing.
Feeder Cattle futures closed an average of $1.60 higher week to week on Friday. Live Cattle futures closed an average of $1.70 higher.