AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This Week Last Week Last year
291,800 343,600 195,200
Compared to last week, steers and heifers sold 1.00 to 3.00 lower, with the exception of steers and heifers in the Southeast region being steady to 2.00 higher.
Cattle producers are being inventive in ways to cut cost of gains as they see current ration costs just skyrocket compared to what they were a year ago. Corn prices in major producing areas are near double from a year ago with distillers prices about the same. Last summer distillers prices traded significantly lower than the yearly high realized in April.
Backgrounders continue to fight for cattle that have a high probability of providing the new owner compensatory gain.
On Wednesday at Huss Livestock Market (Kearney NE), a part-load of 705 lb steers that will be going to grass sold at 171.50.
As the CME Cattle Complex moved lower, negotiated cash fed cattle moved higher. Ultimately, the convergence of futures and cash stopped the tendering of certificates for CME Live Cattle Delivery. This week, the April Live Cattle contract was 2.575 lower to close at 120.85, with cash cattle trading mostly on Thursday and Friday at 120.00 to 121.00 in the Southern Plains. So far this month, there were 119 loads tendered for delivery, with 74 loads of those actually delivered (the balance being reclaimed the week after tendering).
The Feeder Cattle contracts were the hardest hit this week with the April through August contracts being over 5.00 lower for the week and the September through November contracts being between 4.00 and 5.00 lower on the week.
The August Feeder contract has now retraced downward to closing prices posted the week of March 15.
Demand for beef continues to rally the Choice and Select boxes and beef packer margins are soaring to year ago levels as cash fed cattle prices are not surging as fast as wholesale beef prices. Choice boxed beef values closed the week 3.88 higher at 276.05, while Select was 5.03 higher at 269.10. The Choice-Select spread was published at 6.95.
Steer dressed weight for week ending April 3, 2021 was reported at 894 lbs, 5 lbs lower than the previous week and only 5 lbs heaver than a year ago.
Cattle Slaughter under federal inspection estimated at 640K for the week, 1K less than last week, and 154K more than a year ago. Auction volume this week included 53 percent weighing over 600 lbs and 45 percent heifers.
Northwest Weighted Average Direct Feeder Cattle
Weekly Summary WA-OR-ID-UT
This Week Last Week Last year
1429 866 365
Compared to last week: Not enough trades this week for a trend. Demand moderate. Supply included: 100% Feeder Cattle (36.5% Steers, 63.5% Heifers). Feeder cattle supply over 600 lbs was 100%. Unless otherwise noted, Feeder Cattle prices FOB based on net weights after a 2-3% shrink or equivalent, with a 4-8 cent slide > 600 lbs. Livestock reported this week originated from ID, OR, UT.
Steers — Medium and Large 1
17 Head: 825 lbs, 138.00 Current DEL
25 Head: 800 lbs, 146.00 Jul DEL
180 Head: 950 lbs, 136.00 Jul DEL
300 Head: 950 lbs, 138.00 Aug DEL
Heifers — Medium and Large 1
115 Head: 825 lbs, 128.00 Current DEL
72 Head: 800 lbs, 137.00 Jul DEL
420 Head: 900 lbs, 130.00 Jul DEL
300 Head: 900 lbs, 132.00 Aug DEL