Live cattle and feeder cattle futures skyrocketed higher over the week as improving market conditions and tighter supplies sent the market higher.
Live cattle futures climbed higher over the week. The August contract gained nearly $11 to close at $238.75, and the October contract gained more than $9 to close at $232.22.
“Recently, futures seem to be waking up to the multiple contributing factors to this ‘perfect storm’ bull market, such as resilient and somewhat inelastic domestic beef demand, dramatically improved pasture conditions, plentiful hay, some early beef heifer retention, the loss of access to a major feeder cattle supplier to the south to name a few standouts,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Cash trade through Thursday totaled only about 3,000 head. Live steers averaged $237, and there was no market trend for dressed steers.
Cash trade for the week ending Aug. 3 totaled 69,534 head. Live steers averaged $243.01, and dressed steers averaged $383.75.
Slaughter through Thursday totaled about 447,000 head, compared to 441,000 head a week earlier. Total slaughter for a week earlier is projected at 535,000 head. Actual slaughter for the week ending July 26 was 553,766 head. The average steer dressed weight was 941 lbs., 6 lbs. above the prior week.
Boxed beef prices were higher over the week. The Choice cutout gained about $17 to close at $378.94, and the Select cutout gained about $12 to close at $353.75.
“Boxed beef values are rallying now, which is also normal seasonally and losses are lessening,” Fish said. “Yet the broader packer dilemma of the difficulty in replacing weekly cattle inventory continues. This is not to say there won’t be another cash cattle market correction. The question is from what level.”
President Donald Trump’s tariffs on dozens of countries went into effect early Thursday morning. Of note includes an extra 50% tariff on Brazilian goods, including beef, which now faces a 76.5% tariff to enter the U.S. The Brazilian Beef Exporters Associations projected beef exports to the U.S. were projected to be worth $1 billion in the second half of the year.
Feeder cattle
Feeder cattle futures soared higher over the week. The August contract gained more than $17 to close at $348.65, and the September contract gained more than $18 to close at $349.62
The CME Feeder Cattle Index gained more than $3 to close at $336.21.
Corn futures were lower over the week. The September contract lost 10 cents to close at $3.84, and the December contract lost 5 cents to close at $4.07.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to a week earlier, feeder steers under 500 lbs. sold steady to $6 lower. Weights over 500 lbs. sold $4-10 higher. Feeder heifers sold from $4 lower to $10 higher. Benchmark steers averaging 777 lbs. sold from $333-350, averaging $341.61.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,200 head on Monday. Compared to the previous sale, feeder steers sold very uneven and mostly steady. Feeder steers over 800 lbs. sold $3 lower, and feeder heifers sold steady to $3 lower. Steer and heifer calves were lightly tested and sold steady to $5 lower. Benchmark steers averaging 781 lbs. sold from $334-350.50, averaging $343.55. — Anna Miller Fortozo, WLJ managing editor
