Cattle futures closed mixed over the week as lighter slaughter volumes spurred boxed beef prices higher.
Live cattle futures closed mixed. The August contract was unchanged at $231.22, and the October contract lost less than $3 to close at $224.92.
Cash trade through Thursday totaled about 72,000 head. Live steers sold from $235-237.50, and dressed steers sold from $370-380.
“In terms of the cash cattle market, bids are on the table, and trade is merely waiting to cut loose at this point,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments. “There was a light trade on Wednesday at $370 in Nebraska (which is $3 higher than last week’s weighted average), but otherwise, no new trade has developed.”
Cash trade for the week ending Aug. 2 totaled 36,487 head. Live steers averaged $232.97, and dressed steers averaged $363.28.
Slaughter through Thursday totaled about 413,000 head, compared to 407,000 head a week earlier. Total slaughter for a week earlier is projected at 512,000 head. Actual slaughter for the week ending July 25 was 525,629 head. The average steer dressed weight was 962 lbs., down 3 lbs. from the prior week.
“The sharp drop in this week’s slaughter should jump start the box prices that seasonally rally in August,” the Cattle Report wrote on Thursday. “The slaughter volume was 25,000 under last year.”
Boxed beef prices made gains over the week. The Choice cutout gained about $3 to close at $363.86, and the Select cutout gained about $8 to close at $349.78.
Lean beef trim futures closed mostly lower over the week. The 50% lean trim August contract lost $4 to close at $171, and the September contract also lost $4 to close at $161. The 90% lean beef trim August contract was unchanged at $457, and the September contract lost $3 to close at $450.
Feeder cattle
Feeder cattle futures closed mixed over the week. The August contract gained less than $2 to close at $348.05, and the September contract lost about a dollar to close at $341.57.
“Just like the live cattle complex, it’s likely the market’s technical barrier at its 40-day moving average is causing the market grief right now,” Stewart said.
The CME Feeder Cattle Index gained less than a dollar to close at $348.65.
Corn futures closed lower. The September contract lost 6 cents to close at $4.39, and the December contract also lost 6 cents to close at $4.62.
“Flood, fire and heat are all creating problems depending on the locale,” the Cattle Report said. “Feedlots were reporting falling feed consumption and widely unverified death tolls. Another indication of the heat is the declining carcass weights.”
Missouri: Joplin Regional Stockyards in Carthage sold 3,647 head on Monday. Compared to a week earlier, feeder steers sold $10-25 higher with the most gain seen on five-weights. Feeder heifers sold steady to $20 higher with the most gain on weights over 600 lbs. Benchmark steers averaging 778 lbs. sold from $348-365, averaging $356.14.
Oklahoma: National Stockyards in Oklahoma City sold 2,662 head on Monday. Compared to a week earlier, feeder steers were lightly tested and few cattle sold $5-10 higher. Feeder heifers sold $5-15 higher. Steer calves sold unevenly steady, and heifer calves sold $10-15 higher. Benchmark steers averaging 778 lbs. sold from $343-356, averaging $348.67.
South Dakota: Sioux Falls Regional in Worthing sold 2,252 head on Monday. As the first feeder cattle sale in three weeks, there were no recent price comparisons available. Benchmark steers averaging 784 lbs. sold from $367.50-370, averaging $369.48.
Texas: Giddings Livestock in Giddings sold 1,229 head on Monday. Compared to the last auction, feeder steers and heifers were steady on the good cattle, with plainer cattle steady to $3 lower. Benchmark steers averaging 714 lbs. sold from $340-365, averaging $345.69. — Anna Miller Fortozo, WLJ managing editor
