Demand for turnout cattle continued to boost calf prices. Overall, steers and heifers traded steady to $3/cwt. higher, according to the Agricultural Marketing Service (AMS).
“Buyers were very critical of excessive flesh, especially on heifers as market activity slowed substantially if they were over-conditioned,” AMS analysts explained. “After the previous week’s downward trend in the futures contracts, early-week sales had cattle buyers more cautious when procuring heavier cattle.”
Feeder Cattle futures closed an average of 81¢ higher week to week on Friday, thanks in large part to a bounce higher Thursday, as traders continue to push Lean Hog futures.
Through Friday afternoon, negotiated cash fed cattle prices for the week were steady to a touch softer in the Northern Plains at $126/cwt. in Nebraska and at $127-$128 in the western Corn Belt. Dressed trade was reported at $204-$206, compared to $206 the previous week. Prices in the Southern Plains were $1-$2 lower at $124.
Other than 35¢ higher in spot Apr, Live Cattle futures closed an average of $1.42 higher week to week on Friday.
Carcass weights diluted by the long, cold and wet winter continue to provide support.
For the week ending Mar. 23, average dressed steer weights were 866 lbs., which was 12 lbs. less than the same week a year earlier, according to USDA’s Actual Slaughter Under Federal Inspection report. The average dressed heifer weight was 804 lbs., which was 11 lbs. lighter than the prior year. Fed cattle slaughter of 492,477 head was 11,614 head more year over year. Total cattle slaughter of 636,169 head was 24,792 head more. Beef production for the week was 9.6 million pounds more than the previous year at 508.4 million pounds.
“Weather impacts are holding carcass weights well below year-ago levels so far this year and annual average carcass weights are projected to only increase slightly year over year,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in is weekly market comments. “Cattle slaughter is projected to increase about 1% year over year. With beef imports projected to decrease and beef exports expected to increase again in 2019, per capita beef consumption is expected to decrease to 56.8 lbs. (retail basis), down from 57.1 lbs. one year ago.”
Increased beef demand, via warmer temperatures and summer grilling season is surely close.
Choice wholesale beef value was 89¢ higher week to week on Friday at $226.93/cwt. Select was $1.39 higher at $220.28.
Friday to Friday Change*
Weekly Auction Receipts
|
Receipts Apr. 5 |
Auction (head) (change) |
Direct (head) (change) |
Video-Net (head) (change) |
Total (head) (change) |
|
233,200 (-25,500) |
92,000 (+23,300) |
2,000 (-67,700) |
327,200 (-2,200) |
CME Feeder Index
| CME Feeder Index* | Apr. 4 | Change |
| $144.01 | + 2.27 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Apr. 5 | Change |
| 600-700 lbs. | $167.48 | + $0.96 |
| 700-800 lbs. | $154.21 | + $2.48 |
| 800-900 lbs. | $143.37 | + $2.99 |
South Central
| Steers-Cash | Apr. 5 | Change |
| 500-600 lbs. | $174.31 | – $0.54 |
| 600-700 lbs. | $160.51 | + $1.48 |
| 700-800 lbs. | $145.59 | + $1.97 |
Southeast
| Steers-Cash | Apr. 5 | Change |
| 400-500 lbs. | $166.79 | + $2.19 |
| 500-600 lbs. | $158.53 | + $1.67 |
| 600-700 lbs. | $144.51 | + $0.99 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Mar. 29 ($/cwt) | Change |
| Choice | $226.93 | + $0.89 |
| Select | $220.28 | + $1.39 |
| Ch-Se Spread | $6.65 | – $0.50 |
Futures
| Feeder Cattle | Apr. 5 | Change |
| Apr | $146.150 | + $0.900 |
| May | $150.225 | + $1.450 |
| Aug | $156.725 | + $0.475 |
| Sep | $158.225 | + $0.500 |
| Oct | $158.975 | + $0.725 |
| Nov | $158.825 | + $0.800 |
| Jan ’20 | $155.475 | + $0.725 |
| Mar | $152.175 | + $0.925 |
| Live Cattle | Apr. 5 | Change |
| Apr | $126.050 | + $0.350 |
| Jun | $120.350 | + $1.350 |
| Aug | $117.375 | + $1.700 |
| Oct | $118.125 | + $1.300 |
| Dec | $121.825 | + $1.525 |
| Feb ’20 | $123.950 | + $1.700 |
| Apr | $124.600 | + $1.350 |
| Jun | $118.375 | + $1.325 |
| Aug | $116.500 | + $1.075 |
| Corn futures | Apr. 5 | Change |
| May | $3.624 | + $0.060 |
| Jul | $3.710 | + $0.048 |
| Sep | $3.794 | + $0.044 |
| Dec | $3.900 | + $0.054 |
| Mar ’20 | $4.030 | + $0.060 |
| May | $4.106 | + $0.072 |
| Oil CME-WTI | Apr. 5 | Change |
| May | $63.08 | + $2.94 |
| Jun | $63.15 | + $2.87 |
| Jul | $63.18 | + $2.78 |
| Aug | $63.17 | + $2.68 |
| Sep | $63.07 | + $2.54 |
| Oct | $62.88 | + $2.41 |
Equities
| Equity Indexes | Apr. 5 | Change |
| Dow Industrial Average | 26424.99 | + 496.31 |
| NASDAQ | 7938.69 | + 209.37 |
| S&P 500 | 2892.74 | + 58.34 |
| Dollar (DXY) | 97.39 | + 0.15 |