Cattle futures traded lower over the week as wholesale beef prices continued to soften and cash trade remained light through Thursday.
Live cattle futures traded lower over the week. The August contract lost about $6 to close at $235.25, and the October contract lost about $5 to close at $231.60.
Cash trade through Thursday totaled about 19,000 head. Live steers sold for $248, and dress steers sold from $385-393.
“Some light cash cattle trade has begun to develop as a handful of cattle have traded at $248 in Texas; but not enough have sold to say any sort of trend has been solidified just yet,” ShayLe Stewart, DTN market analyst, wrote in her Thursday midday comments.
Cash trade for the week ending July 5 totaled 67,108 head. Live steers averaged $255.09, and dressed steers averaged $402.52.
Slaughter through Thursday totaled about 430,000 head, compared to 433,000 head a week earlier. Total slaughter for a week earlier is estimated at 458,000 head due to the holiday-shortened week. Actual slaughter for the week ending June 27 was 535,705 head. The average steer dressed weight was 961 lbs., down 7 lbs. from a week earlier.
“The processors faced stiff headwinds for the entire month of June and recovered some ground this week as cash markets declined,” the Cattle Report wrote on Thursday. “The backdrop for fed supplies will remain tight and cattle owners will hold some leverage but the sustainability for processors to lose $300/head is not a viable proposition.”
Boxed beef prices continue to trend lower. The Choice cutout lost about $9 to close at $380.81, and the Select cutout lost about $6 to close at $363.49.
“Boxed beef prices are trading below a year ago so far in July, the first time in a very long time,” wrote Cassie Fish, market analyst, in The Beef on Tuesday. “The move by Walmart and Sam’s Club to lower ground beef prices has been well publicized the last 24 hours and it’s hard to see how that’s a bad thing for the market. With the cutout below a year ago finally and likely to stay that way this quarter, will beef find some renewed interest by retailers? Will any of them follow Walmart’s lead?”
Feeder cattle
Feeder cattle futures also closed lower over the week. The August contract lost about $8 to close at $356.15, and the September contract lost about $9 to close at $353.
The CME Feeder Cattle Index lost $6.65 to close at $370.75.
Corn futures traded mostly steady. The July contract gained 6 cents to close at $4.27, and the December contract gained 10 cents to close at $4.52.
Missouri: Joplin Regional Stockyards in Carthage sold 5,561 head on Monday. Compared to a week earlier, feeder steers sold steady to $10 higher with the exception of five-weight steers, which sold $15-18 higher. Feeder heifers sold from $5 lower to $5 higher. Benchmark steers averaging 778 lbs. sold from $365-380, averaging $369.07.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 952 head on Monday. Compared to a week earlier, there were not enough cattle to test trends. A somewhat lower undertone was noted on some feeder cattle, but quality and flesh conditions played a factor. Benchmark steers averaging 723 lbs. sold for $387.
Texas: Lonestar Stockyards in Wildorado sold 973 head on Tuesday. Compared to two weeks ago, there were not enough comparable sales on yearlings due to the light test before the holiday week. Steer and heifer calves were too lightly tested from the previous sale for a market trend, but a sharply higher undertone was noted. A group of benchmark steers averaging 702 lbs. sold for $390. — Anna Miller Fortozo, WLJ managing editor
