“There has been a generally bullish theme to the livestock prices this week in a competitively matched supply-and-demand situation and alongside other outside markets,” said Elaine Kub, DTN contributing analyst, in her Thursday closing comments.
Live cattle futures traded higher over the week, with the August contract up nearly $3 to $140.60 and the October contract up $1.45 to $145.10.
Cash trade through Thursday totaled over 90,000 head and traded widely. Live steers sold between $139-149, and dressed steers sold from $227-235.50. In Nebraska and the western Corn Belt, live trade sold as much as $5 higher, while trade in the Southern Plains was fairly inactive.
Cash trade through the first week of August totaled a sizable 102,980 head, up a great deal from several weeks prior. Live steers averaged $141.29, and dressed steers averaged $227.98.
“Due to currentness in the north, especially coupled with tighter fed cattle supplies on deck, cash cattle prices are expected to methodically rise going forward,” said Cassie Fish, market analyst, in The Beef. “Packers are making an effort to maintain inventory so the market does not get away from them.”
The national weekly direct beef type price distribution for the week of Aug. 1-8 was the following on a live basis:
• Negotiated purchases: $141.20.
• Formula net purchases: $141.43.
• Forward contract net purchases: $146.94.
• Negotiated grid net purchases: $140.22.
On a dressed basis:
• Negotiated purchases: $227.76.
• Formula net purchases: $223.22.
• Forward contract net purchases: $218.76.
• Negotiated grid net purchases: $229.20.
Slaughter through Thursday was estimated at 496,000 head, close to on pace with a week earlier. Projected slaughter for the week prior is 651,000 head. Actual slaughter for the week ending July 30 totaled 666,168 head.
Boxed beef prices have traded mostly sideways over the last few weeks but remain at elevated levels for this time of year. The Choice cutout lost a little over $3 to close at $263.10, and the Select cutout lost close to $3 to close at $237.46.
Feeder cattle
Feeder cattle futures were up slightly over the week, with the August contract up $2.50 to $179.95 and the September contract up $2 to $184.60.
The CME Feeder Cattle Index gained several dollars over the week, up $4.31 to $178.06.
“No matter what happens with feed values, in order to produce those high-priced fat cattle that turn into all that high-priced beef, feedlots know they will need to buy calves out of a relatively scarce market in coming months,” Kub said. “Excessive heat is forecast to beat down on cattle country in Kansas and Nebraska through the weekend, which is not at all helpful to rate of gain in the feedlots, nor to range conditions for the diminished beef herds out on grass.”
Kansas: Winter Livestock in Dodge City sold 2,381 head Wednesday. Compared to the last auction two weeks ago, steers 550-1,000 lbs. sold $13-20 higher. Heifers 475-900 lbs. sold $7-15 higher. A group of 111 thin fleshed steers averaging 718 lbs. sold between $185.25-188 and averaged $186.43.
Missouri: Joplin Regional Stockyardsin Carthagesold 4,013 head on Monday. Compared to the previous sale, feeder heifers sold $3-8 higher, with the most gain on weights under 575 lbs. Benchmark steers averaging 762 lbs. sold for $173.
Nebraska: Bassett Livestock in Bassett sold 3,065 head Wednesday. Compared to the previous auction, 660 lb. steers traded $3 higher, 800 lbs. traded steady and 950 lbs. traded $3 lower. Heifer offerings weighing 800 lbs. traded $5 higher. Benchmark steers averaging 765 lbs. sold between $199.50-200.75, averaging $199.84.
New Mexico: Clovis Livestock in Clovis sold 1,335 head Wednesday. Compared to the last auction, steers sold mostly steady to $3 higher. Heifers traded steady to $5 higher. Benchmark steers averaging 735 lbs. sold between $165-171 and averaged $169.66.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,006 head on Monday. Compared to a week earlier, feeder steers and calves sold unevenly steady. Feeder heifers and heifer calves sold steady to $3 higher. Benchmark steers averaging 781 lbs. sold between $170-181, averaging $174.88.
Texas: Lonestar Stockyards in Wildorado sold 1,524 head Tuesday. Compared to the last auction, feeder steers traded $1-6 higher. Steer calves traded mostly firm, with the exception of 500-550 lb. steers, which were $4 lower. All classes of heifers sold steady to $2 higher on comparable sales. Benchmark steers averaging 776 lbs. sold for $170.50. — Anna Miller, WLJ managing editor
