Markets were by no means a bust last week, considering that cattle and beef prices remain significantly higher compared to a year ago. They were disappointing, though, with cash fed cattle unable to build on momentum created the previous week.
Cash fed cattle prices were mainly $2 lower at $128/cwt. with Cattle futures helping set the stage for early trade. Dressed prices later on were steady to $1 lower at $204-$205.
“After a surprising limit-down drop of the Apr Live Cattle contract (on Wednesday), some true hedgers contacted packers to try and take advantage and put some unexpected extra dollars back in their trading account,” explained analysts with the Agricultural Marketing Service (AMS) on Friday. “With that hurried contact, packers felt they were in the driver’s seat and proceeded to buy fed cattle that were priced to them at $128. This week’s strong gains in the cutout value, coupled with the lower fed cattle trade, will keep packer margins in very good shape.”
Choice boxed beef cutout value was $8.49 higher week to week on Friday at $218.37 per cwt. Select was $7.70 higher at $212.82.
Live Cattle futures closed an average of $1.76 lower week to week on Friday ($1.07 to $2.80 lower).
Calf and Feeder Cattle Prices Uneven
Although demand for calves and feeder cattle continued mostly strong last week, winter weather and ice hampered receipts and demand at some auctions. The mid-week selloff in Cattle futures added uncertainty.
Overall, steers and heifers traded from $2/cwt. lower to $3 higher, according to AMS.
Feeder Cattle closed an average of $3.44 lower week to week on Friday ($2.82 to $4.02 lower).
The Cattle on Feed report issued Friday will likely be viewed as neutral to a little bearish by the trade—more bearish depending on what they already priced into the market. January placements were 4.4% higher year over year, rather than the static number expected. Marketings in January were 6.1% more than the previous year, about in line with expectations. Cattle on feed Feb. 1 were 7.9% more than the previous year, which was at the upper end of most expectations.
Friday to Friday Change*
Weekly Auction Receipts
|
Receipts Feb. 23 |
Auction (head) (Change) |
Direct (head) (Change) |
Video/net (head) (Change) |
Total (head) (Change) |
|
222,100 (-15,900) |
44,900 (-18,000) |
39,000 (+36,800) |
306,000 (+2,900) |
CME Feeder Index
| CME Feeder Index | Feb. 22 | Change |
| $147.63 | – 0.52 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Feb. 23 | Change |
| 600-700 lbs. | $173.40 | + $2.49 |
| 700-800 lbs. | $158.09 | + $1.95 |
| 800-900 lbs. | $146.75 | + $0.79 |
South Central
| Steers-Cash | Feb. 23 | Change |
| 500-600 lbs. | $179.13 | + $2.88 |
| 600-700 lbs. | $162.64 | – $0.18 |
| 700-800 lbs. | $149.55 | + $1.03 |
Southeast
| Steers-Cash | Feb. 23 | Change |
| 400-500 lbs. | $178.44 | + $1.25 |
| 500-600 lbs. | $163.89 | – $1.71 |
| 600-700 lbs. | $151.03 | – $2.26 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Feb. 23 ($/cwt) | Change |
| Choice | $218.37 | + $8.49 |
| Select | $212.82 | + $7.70 |
| Ch-Se Spread | $5.55 | + $079 |
Futures
| Feeder Cattle | Feb. 23 | Change |
| Mar | $146.000 | – $3.725 |
| Apr | $148.500 | – $3.900 |
| May | $149.375 | – $3.450 |
| Aug | $152.425 | – $2.925 |
| Sep | $152.275 | – $2.825 |
| Oct | $151.900 | – $3.050 |
| Nov | $150.925 | – $3.600 |
| Jan ’19 | $145.975 | – $4.025 |
| Live Cattle | Feb. 23 | Change |
| Feb | $128.000 | – $2.100 |
| Apr | $124.850 | – $2.800 |
| Jun | $116.800 | – $1.875 |
| Aug | $113.700 | – $1.925 |
| Oct | $115.625 | – $1.500 |
| Dec | $117.600 | – $1.250 |
| Feb ’19 | $117.975 | – $1.075 |
| Apr | $117.600 | – $1.350 |
| Jun | $110.850 | – $1.950 |
| Corn futures | Feb. 23 | Change |
| Mar | $3.662 | – $0.012 |
| May | $3.744 | – $0.006 |
| Jul | $3.822 | – $0.004 |
| Sep | $3.892 | – $0.002 |
| Dec | $3.972 | + $0.002 |
| Mar ’19 | $4.046 | -0- |
| Oil CME-WTI | Feb. 23 | Change |
| Apr | $63.55 | + $2.00 |
| May | $63.41 | + $2.21 |
| Jun | $63.10 | + $2.37 |
| Jul | $62.67 | + $2.48 |
| Aug | $62.16 | + $2.53 |
| Sep | $61.61 | + $2.52 |
Equities
| Equity Indexes | Feb. 23 | Change |
| Dow Industrial Average | 25309.99 | + 90.61 |
| NASDAQ | 7337.39 | + 97.93 |
| S&P 500 | 2747.30 | + 15.08 |
| Dollar (DXY) | 89.88 | + 0.76 |