Between wonderments about ultimate impacts from the bomb cyclone and surging optimism in Lean Hog futures, Cattle futures gained significant ground last week. That, along with clearing weather, whetted buyer appetites for calves and feeder cattle.
Steers and heifers sold $2-$6/cwt. higher, according to analysts with the Agricultural marketing Service (AMS).
“It didn’t matter what weight cattle were, they were in demand,” said AMS analysts. “Many auctions had reputation strings and large bunches on offer, allowing buyers to make full pens of uniform cattle.”
Feeder Cattle futures closed an average of $4.87 higher week to week on Friday ($1.67 higher in spot Mar to $6.37 higher).
“This week’s feeder cattle price movement presents an opportunity to hedge sales for summer and fall at profitable levels for most producers,” notes Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments.
Negotiated cash fed cattle traded end up mostly $1-$2 higher on a live basis at $128/cwt. in the South and $129 in the North (up to $131 in the western Corn Belt). Dressed trade was mainly $4 higher at mostly $208.
Week to week on Friday, Live Cattle futures closed an average of $2.22 higher (62¢ higher in spot Apr to $2.95 higher).
“Finished cattle are trading nearly $2 below the April live cattle contract, which means upside potential remains in the market,” Griffith says. “The slight increase in cattle on feed for March was unexpected by most market participants, but it is unlikely to sway the market in either direction (see below).
Weather-depressed carcass weights continue to offer support as the volume of fed cattle slaughter increases.
Average dressed steer weights for the week ending March 9 were 10 lbs. lighter than the same week a year earlier at 871 lbs., according to USDA’s Actual Slaughter Under Federal Inspection report. Average heifer dressed weights were 9 lbs. lighter at 814 lbs. Total beef production for the week of 488.0 million lbs. was 3.4 million lbs. less than a year earlier but total cattle slaughter was 7,889 head more.
“April marketings will be an important indicator of the potential strength of the cattle markets through the summer. Weak marketings will suggest a backlog of animals,” says Stephen Koontz, agricultural economist at Colorado State University, in the most recent issue of In the Cattle Markets. “As of Feb. 1, he explains the calculated inventory of cattle on feed for more than 120 days of 3.99 million head is 12.2% more than the same time last year and 14.1% more than the five-year average.
In the meantime, wholesale beef values continue to provide support to fed cattle, t00.
Choice boxed beef cutout value was $2.10 higher week to week on Friday at $229.09 per cwt. Select was $1.30 higher at $218.64.
Feedlot Placements Up
Feedlot marketings in February of 1.68 million head—for feedlots with 1,000 head or more capacity—were 0.48% more than a year earlier, according to Friday’s Cattle on Feed report. That was slightly less than most pre-report expectations.
Placements were 1.86 million head in February, which was 2.20% more than a year earlier. Most estimates ahead of the report projected a decline.
Cattle on feed March 1 of 11.80 million head were 0.69% more than the previous year. Average estimates ahead of the report suggested a slight decline.
Friday to Friday Change*
Weekly Auction Receipts
|
Receipts Mar. 22 |
Auction (head) (change) |
Direct (head) (change) |
Video-Net (head) (change) |
Total (head) (change) |
|
256,100 (+49,800) |
90,300 (+42,300) |
2,800 (+26,000) |
257,100 (+118,100) |
CME Feeder Index
| CME Feeder Index* | Mar. 21 | Change |
| $141.02 | + 3.37 |
*Thursday-to Thursday for CME Feeder Index
Cash Stocker and Feeder
North Central
| Steers-Cash | Mar. 22 | Change |
| 600-700 lbs. | $163.06 | + $4.42 |
| 700-800 lbs. | $149.58 | + $3.90 |
| 800-900 lbs. | $140.95 | + $5.27 |
South Central
| Steers-Cash | Mar. 22 | Change |
| 500-600 lbs. | $170.27 | + $4.37 |
| 600-700 lbs. | $155.81 | + $5.10 |
| 700-800 lbs. | $143.89 | + $2.69 |
Southeast
| Steers-Cash | Mar. 22 | Change |
| 400-500 lbs. | $168.19 | + $1.76 |
| 500-600 lbs. | $156.68 | + $0.71 |
| 600-700 lbs. | $144.52 | + $2.52 |
(AMS National Weekly Feeder & Stocker Cattle Summary)
Wholesale Beef Value
| Boxed Beef (p.m.) | Mar. 15 ($/cwt) | Change |
| Choice | $229.09 | + $2.10 |
| Select | $218.64 | + $1.30 |
| Ch-Se Spread | $10.45 | + $0.80 |
Futures
| Feeder Cattle | Mar. 22 | Change |
| Mar | $143.000 | + $1.675 |
| Apr | $148.800 | + $1.875 |
| May | $154.050 | + $5.600 |
| Aug | $159.325 | + $5.775 |
| Sep | $159.950 | + $5.950 |
| Oct | $159.925 | + $6.100 |
| Nov | $159.625 | + $6.375 |
| Jan ’20 | $155.225 | + $5.600 |
| Live Cattle | Mar. 22 | Change |
| Apr | $129.725 | + $0.625 |
| Jun | $123.500 | + $1.575 |
| Aug | $120.025 | + $2.300 |
| Oct | $120.850 | + $2.950 |
| Dec | $123.325 | + $2.925 |
| Feb ’20 | $124.600 | + $2.825 |
| Apr | $124.875 | + $2.750 |
| Jun | $117.800 | + $2.300 |
| Aug | $115.000 | + $1.750 |
| Corn futures | Mar. 22 | Change |
| May | $3.782 | + $0.050 |
| Jul | $3.874 | + $0.052 |
| Sep | $3.932 | + $0.046 |
| Dec | $4.000 | + $0.040 |
| Mar ’20 | $4.102 | + $0.032 |
| May | $4.150 | + $0.028 |
| Oil CME-WTI | Mar. 22 | Change |
| May | $59.04 | + $0.22 |
| Jun | $59.29 | + $0.17 |
| Jul | $59.53 | + $0.09 |
| Aug | $59.75 | + $0.03 |
| Sep | $59.89 | -0- |
| Oct | 59.92 | – $0.03 |
Equities
| Equity Indexes | Mar. 22 | Change |
| Dow Industrial Average | 25502.32 | – 346.55 |
| NASDAQ | 7642.67 | – 45.86 |
| S&P 500 | 2800.71 | – 21.77 |
| Dollar (DXY) | 96.60 | + 0.06 |