Live cattle futures were higher. The June contract gained about $2 to close at $179.62, and the August contract gained about $2.70 to close at $173.87.
Cash trade through Wednesday totaled less than 15,000 head. Live steers sold from $178-179, and dressed steers averaged $290.
“It’s tough telling how this week’s cash cattle market will pan out as feedlots’ showlists are lighter, and they could elect to let this week’s market pass by without moving many cattle and then reoffer their pens next week after the holiday is over and when packers are likely to be more aggressive in the market,” wrote ShayLe Stewart, DTN livestock analyst, in her Wednesday midday comments.
She continued, “However, trade could just as easily develop at steady to slightly lower prices as packers want to keep their inventory somewhat padded to avoid having to overly support in one of the upcoming weeks.”
Cash trade through the week ending June 25 totaled 79,149 head. Live steers averaged $182.78, and dressed steers averaged $290.02.
Slaughter through Wednesday totaled 377,000 head, on pace with a week earlier. Total slaughter for a week earlier is estimated at 649,000 head. Actual slaughter for the week ending June 17 was not yet released ahead of WLJ’s early press time.
Boxed beef prices found themselves lower just ahead of the grilling holiday weekend. The Choice cutout lost about $6.50 to close at $327.90, and the Select cutout lost about $7 to close at $296.68.
“As of last week and using the comprehensive cutout value, packer margins were their most profitable since late August 2022 on average,” Cassie Fish, market analyst, wrote in The Beef on Tuesday. “Considering slaughter is down 3.6% year to date, packers have managed tighter fed cattle supplies very well.”
Feeder cattle
Feeder cattle futures climbed higher over the week, thanks to lower corn prices. The August contract gained nearly $10 to close at $240.30, and the September contract gained just over $9 to close at $243.77.
The CME Feeder Cattle Contract lost about $4.30 to close at $226.01.
Corn futures lost their momentum. The July contract lost nearly 70 cents to close at $5.92, and the September contract lost about 85 cents to close at $5.33.
“Demand remains extremely strong throughout the countryside for feeders, and with the initial purchase price of the animals significantly higher than years past, buyers are seeing the corn market’s weakness as some relief as they’re able to figure better breakeven projections with cheaper feed,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 11,000 head. Compared to the last auction, as of the mid-session, feeder steers are steady, with heifer calves selling $5-8 lower. Benchmark steers averaging 728 lbs. sold between $226.50-235, averaging $229.73.
New Mexico: Roswell Livestock in Roswell sold 1,168 head Monday. Compared to the last auction, steer calves 300-350 lbs. sold $3 higher and 450-550 lbs. sold $6-7 lower. Feeder steers 600-650 lbs. sold $4 higher. Heifer calves 300-350 lbs. sold steady, 350-400 lbs. sold $4 higher and 450-500 lbs. were $13 higher, while 500-550 lbs. sold $4 higher. Feeder heifers 600-650 lbs. were $4 lower, and 650-700 lbs. sold $3 higher. A group of steers averaging 768 lbs. sold between $212-220 and averaged $215.22.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head. As of the mid-session, feeder steers and heifers were not well tested in early rounds compared to the last auction. Benchmark steers averaging 765 lbs. sold between $220-233, averaging $228.61.
Texas: Lonestar Stockyards in Wildorado sold 636 head Tuesday. Compared to the previous auction, there were not enough sales for an accurate comparison. Trade activity was moderate on moderate to good demand. A group of steers averaging 832 lbs. sold for $215.50. — Anna Miller, WLJ managing editor
