Futures contracts headed higher over the week, climbing to new highs. Feedlots continue to hold out until later in the week to sell fed cattle at higher bids.
The expiring June contract climbed $7 higher to close out at $194.17, the August contract gained more than $11 to close at $194.17 and the October contract gained $1.93 to close at $185.75.
“Futures remain significantly discount to cash, which has been exceptionally strong, higher six out of the last eight weeks and making an all-time high last week,” wrote Cassie Fish, market analyst, in The Beef on Tuesday.
Cash trade through Thursday afternoon was about 7,000 head. Live steers sold from $196-200, and dressed steers sold from $306 up to $317.50.
“Packer demand will likely improve throughout the afternoon, but it’s likely that the bulk of the week’s trade will be delayed until Friday as feedlots are aiming to advance the market again this week,” wrote ShayLe Stewart, DTN livestock analyst, in her midday Thursday comments.
Cash trade for the week ending June 23 totaled 73,368 head. Live steers averaged $194.68, and dressed steers averaged $310.69.
Slaughter through Thursday was estimated at 474,000 head, about 7,000 head short of a week earlier. Projected total slaughter for a week earlier is 620,000 head. Actual slaughter for the week ending June 15 was 615,083 head. The average steer dressed weight was 917 lbs., 1 lb. lower than the previous week.
“The fed cattle portion of the slaughter continues to keep the fed supplies current despite increasing slaughter weights,” the Cattle Report said on Wednesday.
Boxed beef prices traded sideways to lower, with the Choice cutout up 46 cents to $323.33 and the Select cutout down $1.70 to 302.70.
“Many specific items continue to trade well below 2023 levels, but overall the composite values are holding together, thanks to a lot of support from various items going into the grind,” Fish said on Thursday.
USDA’s latest Cattle on Feed report released on June 21 showed total cattle and calves on feed down slightly from a year earlier. Placements were 4% higher, marketings were slightly higher and other disappearance was 16% lower.
Feeder cattle
The August contract gained 83 cents to close at $260.65, and the September contract gained 23 cents to close at $261.40.
The CME Feeder Cattle Index gained $3.25 to close at $259.04.
“Between the additional market support that’s seeping over from the live cattle contracts and their slightly higher tone to the continued support of tremendous feeder cattle demand in the countryside amid slightly lower corn prices—feeders are ready for action as the market’s horizon is bright and lined with ample support,” Stewart said.
Corn futures continued their descent over the week, with the July contract down 26 cents to $4.13 and the September contract down 22 cents to close at $4.22.
Missouri: Joplin Regional Stockyards in Carthage sold 9,031 head on Monday. Compared to a week earlier, feeder steer calves sold $7-14 lower. Yearling steers over 725 lbs. sold steady to $6 higher. Feeder heifer calves sold $2-4 lower. Yearling heifers over 700 lbs. sold steady to $10 higher. Benchmark steers averaging 771 lbs. sold from $255-273, averaging $263.10.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,200 head on Monday. Compared to a week earlier, steers and heifers sold $3-5 lower, except steers over 850 lbs. sold $3 higher. Benchmark steers averaging 767 lbs. sold from $262-264, averaging $263.61. — Anna Miller, WLJ managing editor
