Feeder-weight cattle continued to face buying pressure last week as the cold, wet winter slows and delays fed cattle marketing.
“Until feedyard pens freeze up or dry up, cattle expend too much energy just getting to and from the bunks to meet their projected weights,” explained analysts with the Agricultural Marketing Service (AMS). They note feedlot cost of gain for winter-heavy regions is in the triple digits.
On the other end of the scale, demand continues to pick up for calves destined for summer grass.
Overall, steers and heifers traded from $2/cwt. lower to $1 higher in the North and South Central regions, but $3-$7 higher in the Southeast, according to AMS.
Week to week on Friday, Feeder Cattle futures closed an average of 75¢ lower through the front three contracts (25¢ lower to $1.67 lower in spot Mar) and then an average of 99¢ higher.
Fed Cattle Trade Higher
Short-bought packers finally had to cough up more jingle this week.
Negotiated cash fed cattle trade was $1.50-$3.50 higher on a live basis Friday at $128-$130/cwt. in the western Corn Belt, $128-$129 in Nebraska and at $128 in the Texas Panhandle, according to the Texas Cattle Feeders Association. Dressed trade was $3 more week to week at $205; a few up to $206 in the western Corn Belt.
Week to week on Friday, Live Cattle futures closed an average of 53¢ higher (15¢ higher to 95¢ higher).
Front-end supplies will continue to snug up, due to the weather.
Dressed steer weights for the week ending Feb. 16 were 6 lbs. lighter than the previous week at 879 lbs., according to the most recent USDA Livestock Slaughter report. They were 4 lbs. lighter than a year earlier. Likewise, dressed heifer weights were 3 lbs. lighter week to week at 819 lbs., which was 9 lbs. lighter than a year earlier.
At the same time, rising wholesale beef values continue to bolster cattle prices.
Choice wholesale beef value was $1.90 higher week to week on Friday at $221.29 per cwt. Select was $4.44 higher at $216.79.
Beef Cowherd Expands
The long-awaited Cattle report—offering a picture of estimated cattle inventories at the beginning of the year—finally came out Thursday, about a month late because of the government shutdown.
There were 0.95% more beef cows at the beginning of this year than last (+299,500 head) at 31.77 million. Interestingly, analysts with the National Agricultural Statistics Service revised last year’s Jan. 1 inventory lower by 256,800 head to 31.47 million head.
There were 5.92 million beef of replacement heifers Jan. 1, which was 183,300 head fewer than a year earlier (-3.0%).
All told, USDA pegged the total inventory of all cattle and calves Jan. 1 at 94.76 million head, which was 461,700 more than a year earlier (+0.49%).
Friday to Friday Change*
Weekly Auction Receipts
|
Receipts Mar. 1 |
Auction (head) (change) |
Direct (head) (change) |
Video-Net (head) (change) |
Total (head) (change) |
|
219,100 (+10,900) |
60,400 (+2,700) |
2,700 (-45,900) |
282,200 (-32,300) |
CME Feeder Index
| CME Feeder Index* | Feb. 28 | Change |
| $139.23 | – $2.08 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Mar. 1 | Change |
| 600-700 lbs. | $160.30 | – $0.10 |
| 700-800 lbs. | $145.75 | – $1.69 |
| 800-900 lbs. | $138.13 | – $0.78 |
South Central
| Steers-Cash | Mar. 1 | Change |
| 500-600 lbs. | $167.56 | – $1.92 |
| 600-700 lbs. | $151.46 | – $0.61 |
| 700-800 lbs. | $140.67 | – $0.59 |
Southeast
| Steers-Cash | Mar. 1 | Change |
| 400-500 lbs. | $167.05 | + $6.56 |
| 500-600 lbs. | $154.79 | + $4.42 |
| 600-700 lbs. | $142.14 | + $3.72 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Mar. 1 ($/cwt) | Change |
| Choice | $221.29 | + $1.90 |
| Select | $216.79 | + $4.44 |
| Ch-Se Spread | $4.50 | – $2.54 |
Futures
| Feeder Cattle | Mar. 1 | Change |
| Mar | $141.225 | – $1.675 |
| Apr | $145.050 | – $0.250 |
| May | $146.525 | – $0.325 |
| Aug | $151.400 | + $0.350 |
| Sep | $152.150 | + $0.800 |
| Oct | $152.325 | + $0.875 |
| Nov | $151.875 | + $0.925 |
| Jan ’20 | $148.775 | + $2.025 |
| Live Cattle | Mar. 1 | Change |
| Apr | $129.550 | + $0.675 |
| Jun | $120.425 | + $0.950 |
| Aug | $116.275 | + $0.775 |
| Oct | $116.925 | + $0.300 |
| Dec | $120.650 | + $0.525 |
| Feb ’20 | $120.850 | + $0.500 |
| Apr | $120.850 | + $0.375 |
| Jun | $113.825 | + $0.150 |
| Aug | $112.175 | n/a |
| Corn futures | Mar. 1 | Change |
| Mar | $3.640 | – $0.112 |
| May | $3.730 | – $0.114 |
| Jul | $3.814 | – $0.110 |
| Sep | $3.872 | – $0.092 |
| Dec | $3.942 | – $0.074 |
| Mar ’20 | $4.046 | – $0.070 |
| Oil CME-WTI | Mar. 1 | Change |
| Apr | $55.80 | – $1.46 |
| May | $56.19 | – $1.56 |
| Jun | $56.65 | – $1.60 |
| Jul | $57.11 | – $1.60 |
| Aug | $57.49 | – $1.59 |
| Sep | $57.75 | – $1.57 |
Equities
| Equity Indexes | Mar. 1 | Change |
| Dow Industrial Average | 26026.32 | – 5.49 |
| NASDAQ | 7595.35 | + 67.81 |
| S&P 500 | 2803.69 | + 11.02 |
| Dollar (DXY) | 96.46 | – 0.07 |