Cash trade was lighter over the week, with trade steady in Texas and Kansas and $2-3 higher in Nebraska and the western Corn Belt compared to a week earlier.
June’s Cattle on Feed (COF) report showed cattle and calves on feed 1 percent higher than June 2021, at 11.8 million head. Placements in feedlots during May totaled 1.87 million head, 2 percent below 2021. Marketings of fed cattle during May were 2 percent above 2021, and disappearance totaled 76,000 head during May, 13 percent above 2021.
Live cattle rallied after the release of the COF report but struggled throughout the week. The June contract gained $2.75 to close the month at $138. The August contract lost $1.30 to close at $132.57, and the October contract was down $1.23 to $138.77.
“As the board has become subject to more technical pressure, as June expires and August takes the center stage, traders haven’t been willing to put much support in the market and it’s taken the wind out of the cash cattle market’s rally,” ShayLe Stewart, DTN livestock analyst, wrote in Wednesday’s closing comments.
Cash trade through Thursday totaled about 64,000 head. Live cattle traded between $138-151, and dressed steers sold from $230-239 and averaged $233.94.
Cash trade through last week totaled 94,598 head. Live steers averaged $144.90, and dressed steers averaged $235.14.
The national weekly direct beef type price distribution for the week of June 20-27 was the following on a live basis:
• Negotiated purchases: $144.15.
• Formula net purchases: $144.36.
• Forward contract net purchases: $146.97.
• Negotiated grid net purchases: $141.18.
On a dressed basis:
• Negotiated purchases: $235.53.
• Formula net purchases: $227.14.
• Forward contract net purchases: $220.
• Negotiated grid net purchases: $225.50.
Slaughter through Thursday is estimated at 499,000 head, 1,000 head more than a week earlier. Slaughter for the week earlier is projected at 666,000 head, with live weights of 1,344 lbs. and dressed weights of 811 lbs. Actual slaughter for the week ending June 18 was 668,391 head.
Boxed beef prices were down, with the Choice cutout down 66 cents to $264 and the Select cutout down $4.37 to $240.57.
Feeder cattle
Feeder cattle reacted favorably to the COF report but could not find any fundamental support despite corn futures falling. The August contract lost $1.25 to close at $173.60, and the September contract was down 63 cents to $176.22. The CME Feeder Cattle Index was up $1.21 to $166.44.
USDA’s National Agricultural Statistics Service just released the latest Acreage report, showing estimated planted corn acreage down 4 percent, at 89.9 million acres. This was down 3.44 million acres from 2021, but an estimated 4 million acres are left to be planted.
Following the release of the report, corn futures dropped. For the week, the July contract was down 3 cents to $7.43, and the September contract lost 38 cents to close at $6.28 a bushel.
Missouri: Joplin Regional Stockyards in Carthage sold 10,440 head Monday. Compared to the last auction, feeder steers traded $5-8 higher, with feeder heifers trading steady to $4 higher. Benchmark steers averaging 778 lbs. sold between $166-175.50, averaging $168.85.
Nebraska: Bassett Livestock in Bassett sold 7,340 head Wednesday. There was no recent test of the market for an accurate comparison, so a trend could not be given for steers or heifers. Benchmark steers averaging 784 lbs. sold between $183.25-196, averaging $189.56.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,633 head on Monday. Compared to the last auction, feeder steers over 800 lbs. sold $2-6 higher; under 800 lbs. were steady to $2 lower. Feeder heifers traded $1-4 lower. Steer and heifer calves were $2-4 higher. Benchmark steers averaging 771 lbs. sold between $161-169 and averaged $164.46. — Charles Wallace, WLJ editor
