The market started the week on a later note, with the markets closed on Monday due to the new federal holiday, Juneteenth. Cash trade was limited compared to a week earlier, but bids were steady to several dollars higher. Uncertainty about the economy and the rise in input costs has knocked corn prices lower, sending feeders higher.
Live cattle futures saw losses of a couple dollars over the week, with the June contract down $2.50 to $135.25 and the August contract down $2.43 to $133.87.
Cash trade through Thursday totaled about 62,000 head, about 20,000 head less than a week earlier. Live cattle sold in a wide spread, from $137-150, and were steady to $3 higher compared to a week earlier. Dressed steers sold from $230-240, averaging on the higher end of $230.
Cash trade for the week ending June 19 totaled 107,080 head. Live steers averaged $143.87, and dressed steers averaged $229.85.
“The question on many minds is the future regional basis for fed cattle. Packers are purchasing cattle for $240 dressed rather than buying live. Assuming a 63.50 percent carcass yield, the sale is the equivalent of $152 live,” wrote the Ag Center in the Cattle Report.
“The range of prices for fed cattle would be $137-$152 or $15/cwt—a historic high. Projecting the same regional basis into the future involves assuming a premium to the live cattle futures for northern cattle. While grading historically is higher in the north, it is not $200/head better.”
The national weekly direct beef type price distribution for the week of June 13-20 was the following on a live basis:
• Negotiated purchases: $143.63.
• Formula net purchases: $141.47.
• Forward contract net purchases: $148.07.
• Negotiated grid net purchases: $139.31.
On a dressed basis:
• Negotiated purchases: $229.98.
• Formula net purchases: $222.93.
• Forward contract net purchases: $219.91.
• Negotiated grid net purchases: $224.89.
Slaughter through Thursday is estimated at 498,000 head, a few thousand head more than a week earlier. Slaughter for the week earlier is projected at 667,000 head. Actual slaughter for the week ending June 11 was 671,075 head. Steer weights were 879 lbs.
Boxed beef prices were lower over the week, with the Choice cutout down $2.50 to $264.66 and the Select cutout down 44 cents to $244.94.
Feeder cattle
Feeder cattle futures were several dollars higher over the week. The August contract gained $3.55 to close at $174.85, and the September contract gained $3.63 to close at $176.85.
The CME Feeder Cattle Index found some solid gains, up $4.67 to $165.23.
“Fear of the coming recession and anticipation of faltering demand has inspired aggressive selling across many commodities, rocking the commodity futures price world last night and today,” Cassie Fish, market analyst for The Beef, wrote Thursday.
“From crude to corn, to soybeans, lean hogs and cattle—it’s a meltdown. Only feeder cattle values are higher, boosted by new lows in corn prices for the month.”
Corn futures were knocked lower over the week. The July contract lost 42 cents to close at $7.46, and the September contract lost 75 cents to close at $6.66.
Kansas: Winter Livestock in Dodge City sold 991 head on Wednesday. Compared to a week earlier, feeder steers 800-925 lbs. sold $3-5 lower on light receipts. Feeder heifers 800-900 lbs. sold $1-3 higher on light receipts. There were not enough calves and yearlings for a market test. Benchmark steers averaging 789 lbs. sold between $152-159.50, averaging $159.22.
Missouri: Joplin Regional Stockyards in Carthage sold 5,584 head on Monday. Compared to a week earlier, feeder steers under 500 lbs. traded steady to $6 higher. Steers over 500 lbs. traded $6-12 higher. Feeder heifers traded $6-11 higher. Benchmark steers averaging 776 lbs. sold between $159-171, averaging $163.58.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head on Monday. At the mid-session, compared to a week earlier, feeder steers sold steady to $2 higher, and feeder heifers sold $2-4 higher. Steer calves sold mostly steady, and heifer calves sold $3-6 higher. Benchmark steers averaging 780 lbs. sold between $150-175, averaging $168.50.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 909 head on Monday. Compared to two weeks prior, 850 lb. feeder steers sold with steady to lower undertones, and 900 lbs. and over sold with steady to higher undertones. Feeder heifers 750 lbs. and under sold with steady to lower undertones, and over 800 lbs. sold with steady to higher undertones. Benchmark steers averaging 783 lbs. sold between $178-187, averaging $178.98. — Anna Miller,WLJ managing editor
