The market eased into the week ahead of the Fourth of July holiday. Cash trade was hesitant to move forward with packer demand uncertain in advance of the holiday weekend. Numbers on the board stayed mostly steady over the week.
Live cattle futures were mixed over the week. The August contract lost 52 cents to close at $185.92, and the October contract gained $1.10 to close at $186.85.
“Futures discount to cash prices and the cash cattle market’s reluctance to break currently is a simple and accurate explanation as to the market’s resilience,” wrote Cassie Fish, market analyst, in The Beef on Wednesday.
Cash trade through Wednesday totaled about 5,000 head. Live steers sold from $189-195, and dressed steers sold for $308.
“It’s a tough call to say whether any developments in the cash market will surface later Wednesday afternoon, because more than anything the question remains: How desperately do packers need cattle?” ShayLe Stewart, DTN livestock analyst, asked in her Wednesday midday comments. “And if cattle aren’t sold later Wednesday, will packers come back to the table on Friday or simply wait to buy more cattle next week?”
Cash trade for the week ending June 30 totaled 68,879 head. Live steers averaged $195.89, and dressed steers averaged $313.49.
Slaughter through Wednesday totaled about 353,000 head. Total slaughter for the week was projected to be about 500,000-520,000 head due to the holiday-shortened kill week. Numbers may be less than estimated due to a Kansas plant shutting down operations for several days after a roof issue. Total slaughter for a week earlier is projected at 609,000 head.
Boxed beef prices climbed higher ahead of the holiday. The Choice cutout gained about $6 to close at $329.84, and the Select cutout gained about $2 to close at $304.38.
“Expectations are that the rib and loin will weaken some in July seasonally, but this week’s expected smaller-than-a-typical-July 4th slaughter thanks to a plant being dark, has supported values well past a normal seasonal top,” Fish said.
Feeder cattle
Feeder cattle futures were a few dollars higher over the week. The August contract gained a little under $3 to close at $263.37, and the September contract gained over $2 to close at $263.62.
The CME Feeder Cattle Index lost $2.60 to close at $256.44.
“Between the added support of the live cattle contracts trading higher amid slightly lower corn prices, feeders are trading higher with ease heading into Wednesday’s noon hour as fundamentally the market is incredibly well supported,” Stewart said.
Corn futures continue to hover around the $4 mark. The July contract lost 10 cents to close at $4.03, and the September contract lost 17 cents to close at $4.05.
Missouri: Joplin Regional Stockyards in Carthage sold 6,620 head on Monday. Compared to a week earlier, feeder steers sold steady to $4 higher. Feeder heifers sold from $10 lower to $4 higher.
Oklahoma: Oklahoma National Stockyards sold 2,700 head on Monday. Compared to a week earlier, steers and heifers sold $4-8 higher with instances of up to $15 higher. Buyers were aggressive for all classes of cattle. Benchmark steers averaging 771 lbs. sold from $264-275, averaging $269.99.
South Dakota: Sioux Falls in Worthing sold 2,298 head on Monday. There was no trend reported as there were no recently reported auctions. A lower undertone was noted. Benchmark steers averaging 778 lbs. sold from $267-284, averaging $275.05. — Anna Miller, WLJ managing editor
(Editor’s note: This report was prepared using information available as of Wednesday afternoon due to an earlier press schedule ahead of the Fourth of July holiday.)
