Feeder cattle sold tremendously well over the week, with both Western Video Market and Superior Livestock Auction hosting feeder and calf sales with excellent demand and bids. Cash trade was mostly steady, and the board reflected a disappointing export report.
“Still, the futures market is only trending modestly lower as it comes up against its three-month average high, which is rather impressive given that it is indeed the middle of July,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Beef net sales were 9,200 metric tons for 2022 and reflected a marketing year low. Sales were down 17 percent from the previous week and 35 percent from the prior four-week average. The three largest buyers were Japan, Mexico and Canada.
Live cattle futures traded mostly higher over the week but ultimately closed sideways. The August contract gained 85 cents to close at $135.40, and the October contract gained 7 cents to close at $139.92.
Cash trade through Thursday totaled about 71,000 head. Live steers traded from $136-147, averaging closer to $142, but there was some cash trade as high as $150 on Thursday. There continues to be a large disparity between Northern and Southern Plains trade, with trade in the North selling for several dollars higher. Dressed steers sold between $224-232, averaging closer to $229.
Cash trade was light through the holiday-shortened Fourth of July week, totaling 71,515 head. Of that, 68 percent (48,490 head) were committed to nearby delivery, while the remaining 32 percent (23,025 head) were committed to deferred delivery. Live steers averaged $144.15, and dressed steers averaged $232.61.
The national weekly direct beef type price distribution for the week of July 4-11 was the following on a live basis:
• Negotiated purchases: $144.18.
• Formula net purchases: $146.11.
• Forward contract net purchases: $154.68.
• Negotiated grid net purchases: $141.93.
On a dressed basis:
• Negotiated purchases: $232.54.
• Formula net purchases: $230.35.
• Forward contract net purchases: $221.
• Negotiated grid net purchases: $232.97.
Slaughter through Thursday totaled 500,000 head, compared to the 380,000 head a week prior (which had the Fourth of July holiday). Actual slaughter for the first week of July totaled 640,695 head.
Boxed beef prices traded steady with a week earlier. The Choice cutout lost 2 cents to close at $268.05, and the Select cutout gained $1.32 to close at $241.26.
Feeder cattle
“This week has been an absolute whirlwind for the feeder cattle market as buyers rush to sales and buy as if they have gold sitting in duffel bags out in their beat-up one-ton in the parking lot,” Stewart said. “All while the grain market has been under almost constant pressure, which has helped brighten buyers’ cost of gains as feed prices are dropping.”
Feeder cattle futures traded red hot over the week but took a step back on Thursday. Compared to the week prior, the August contract gained over $6 to close at $178.90, and the September contract gained over $5 to close at $181.62.
The CME Feeder Cattle Index gained over $11 to close at $174.05.
Corn futures dropped lower, with nearby contracts below $7. The July contract lost 52 cents to close at $6.95, and the September contract lost 4 cents to close at $6.05.
“The feeder cattle market is showing no sign of slowing down as Western Video Market and Superior continue to sell calves and feeders at dynamite prices,” Stewart said.
Iowa: Russell Livestock in Russell sold 1,163 head on Monday. There was no recent sale for a comparison. Demand was strong, and there was active trade. Benchmark steers averaging 782 lbs. sold between $146-158 and averaged $152.12.
Kansas: Winter Livestock inDodge City sold 942 head on Wednesday. Compared to a week earlier, feeder steers 450-950 lbs. sold $3-10 higher on light receipts. Feeder heifers 450-900 lbs. sold $3-10 higher on light receipts. Benchmark steers averaging 787 lbs. sold between $155-156 and averaged $155.27.
Missouri: Joplin Regional Stockyards in Carthage sold 11,000 head Monday. At the mid-session, compared to a week earlier, feeder steers were trading steady to $2 higher, and feeder heifers were trading steady to $4 higher. Benchmark steers averaging 774 lbs. sold between $168-176, averaging $169.59.
Nebraska: Bassett Livestock in Bassett sold 10,950 head Wednesday. Compared to the last auction, steers 400-950 lbs. traded steady to $7 higher, with steers 750-800 lbs. trading $13-16 higher. Heifer offerings 500-700 lbs. traded steady to $7 higher, and heifers 800-850 lbs. traded $12-13 higher. Benchmark steers averaging 771 lbs. sold between $194.50-220, averaging $206.47.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,500 head on Monday. At the mid-session, compared to a week earlier, feeder steers and heifers sold $3-5 higher. Steer calves were steady to $3 lower. Heifer calves traded $1-4 higher. Benchmark steers averaging 728 lbs. sold between $170-182 and averaged $174.76.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,032 head on Monday. Compared to two weeks earlier, feeder steers under 700 lbs. sold with higher undertones, 700-750 lbs. sold steady to $1 lower and over 750 lbs. sold steady to $5 higher. Feeder heifers sold steady to $3 higher, and 850-900 lbs. sold $6-8 higher. Benchmark steers averaging 780 lbs. sold between $179-184 and averaged $182.02. — Anna Miller, WLJ managing editor
