Cattle futures remained higher on the week but traded on both sides amid record-high prices, overbought technical conditions and a volatile market. With the fed cash cattle trade still undeveloped, traders appear hesitant, waiting for confirmation that fundamentals will support the futures market’s aggressive upward move.
“Following the major advancement in which the market has pushed earlier this week, traders are now (once again) seeming to sit on their hands waiting for developments to surface in the fed cash cattle market,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments on Thursday. “More than anything, traders are hopeful that the market will indeed trade higher to justify their technical advancement, but the cash market has yet to trade any cattle.”
Live cattle futures were higher during the week, with the August contract up $2.13 to $225.80 and the October contract gaining $1.83 to $222.15.
Cash trade through Thursday totaled just 4,500 head. Live steers sold for $236, and there were not enough dressed steers sold for a market trend.
“Bids in the North have been lower than last week’s average and are being passed,” wrote Cassie Fish, market analyst, on Thursday in The Beef. “Packers are red and trying to save on cattle costs by buying cattle cheaper this week, which will likely prove very difficult.”
Cash trade for the week ending July 20 totaled 60,389 head. Live steers averaged $238.36, and dressed steers averaged $379.46.
Slaughter through Thursday was estimated to be 448,000 head, compared to 458,000 head a week earlier. Total slaughter for the week prior was projected to be 563,000 head. Actual slaughter for the week ending July 12 was 571,565 head. The average steer dressed weight was 934 lbs., 1 lb. above the prior week.
Boxed beef prices continued their seasonal decline, with the Choice cutout down $5.19 to $368.09 and the Select cutout down over $6 to $347.
Analysts released the pre-report estimates for Friday’s Cattle on Feed report release. The consensus is that cattle on feed will be 99.1% for feedlots of 1,000 head or greater in July. Placements in June are estimated to be 98.1%, and marketings for June are predicted at 96.1%.
Feeder cattle
Feeder cattle futures also saw prices climb several dollars, with the August contract gaining $3.90 to $328.90 and the September contract up $4.23 to $329.65.
The CME Feeder Cattle Index was up $5.53 to $327.44.
Corn futures were slightly lower, with the September and December losing a penny to $4.01 and $4.20, respectively.
Kansas: Winter Livestock in Dodge City sold 803 head on Wednesday. Compared to the previous auction, feeder steers and calves were not well tested, but a higher undertone was noted. Heifers over 550 lbs. sold steady to $10 higher and under 550 lbs. were not well tested. Benchmark steers averaging 759 lbs. sold for $344.50-354, averaging $348.01.
Missouri: Joplin Regional Stockyards in Carthage sold 5,613 head on Monday. Compared to a week earlier, feeder steers sold $2-10 higher and feeder heifers sold steady to $3 higher. Benchmark steers averaging 771 lbs. sold from $320-341, averaging $330.07.
Nebraska: Bassett Livestock in Bassett sold 2,035 head on Wednesday. There were a limited number of comparable offerings from two weeks ago, with 1,000-1,050 lbs. steers trading $13-23 higher. Benchmark steers averaging 722 lbs. sold for $362.50-386, averaging $379.31.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,445 head on Monday. Compared to the sale held a week earlier, feeder steers sold $4-8 higher. Steer calves traded mostly steady. Feeder heifers traded steady to $3 lower, except over 800 lbs. were up to $10 higher. Heifer calves sold $5-10 higher. Benchmark steers averaging 776 lbs. sold from $315-336, averaging $329.47. — Charles Wallace, WLJ contributing editor
