Cattle markets closed higher over the week, with futures, cash trade and boxed beef prices all trending upward.
Live cattle futures closed higher over the week. The August contract gained about $5 to close at $238.65, and the October contract gained about $8 to close at $234.72.
“It’s anticipated that prices will trade at least steady, if not a bit higher, again this week simply because feedlot managers possess enough leverage in the marketplace to be able to roll their showlists over if prices aren’t what they want,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade through Thursday totaled about 47,000 head. Live steers sold from $237-247, and dressed steers sold from $380-392.
“Packers will be heading into next week’s ‘long week buying for a short week’ with every intention of paying no more than steady,” wrote Cassie Fish, market analyst, in The Beef on Thursday.
Cash trade through Aug. 17 totaled 59,039 head. Live steers averaged $240.20, and dressed steers averaged $382.04.
Slaughter through Thursday totaled about 450,000 head, compared to 446,000 head a week earlier. Total slaughter for a week earlier is projected at 530,000 head. Actual slaughter for the week ending Aug. 9 was 536,811 head. The average steer dressed weight was 939 lbs., 2 lbs. below a week earlier.
“Box prices are surging, boosted by sharp drops in daily slaughter and uncertainty regarding imports from Brazil and continuing blockage at the U.S. Mexico border of live imports of cattle,” wrote the Cattle Report on Thursday.
Boxed beef prices climbed higher, finally crossing over the $400 mark. The Choice cutout gained about $10 to close at $407.86, and the Select cutout gained about $17 to close at $383.60.
“There is growing anticipation that boxed beef prices will experience a seasonal set back next week, with an expected bottom post-Labor Day,” Fish said. “This year it appears the September wholesale beef low will be higher than the July low.”
Feeder cattle
“Traders are seeing plenty of support,” Stewart said. “Support from feeder cattle sales in the countryside, support from strong boxed beef demand, support from the light movement that the fed cash cattle complex has seen already this week, and, as of this point this week, total support from traders.”
Feeder cattle futures were sharply higher over the week. The August contract gained about $16 to close at $356.37, and the September contract gained about $17 to close at $358.02.
The CME Feeder Cattle Index gained about $1.50 to close at $345.58.
Corn futures were higher, up 12 cents on the September contract to $3.87 and up 14 cents on the December contract to $4.11.
Missouri: Joplin Regional Stockyards in Carthage sold 3,966 head on Monday. Compared to a week earlier, feeder steers sold $2-10 higher with heavy seven-weight steers up to $20 higher. Feeder heifers under 725 lbs. sold $2-15 higher. Heavier weights sold $3-5 lower. Benchmark steers averaging 773 lbs. sold from $351-374, averaging $365.07.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,500 head on Monday. Compared to a week earlier, feeder steers sold $2-6 higher and feeder heifers sold $5-8 higher. Steer and heifer calves sold sharply higher and with gains of up to $25. Benchmark steers averaging 783 lbs. sold from $353.75-367, averaging $358.56.
South Dakota: Sioux Falls Regional in Worthing sold 2,492 head on Monday. Compared to two weeks earlier, feeder steers under 1,000 lbs. sold $5-10 higher and over 1,000 lbs. sold $15-20 higher. Feeder heifers sold $12-20 higher in a narrow comparison. Benchmark steers averaging 772 lbs. sold from $362-377.50. — Anna Miller Fortozo, WLJ managing editor
