After first reacting bearishly to the news that USDA would begin re-opening the southern border to cattle imports, markets regrouped and closed higher ahead of the Fourth of July holiday.
Live cattle futures were several dollars higher over the week, up about $5 on the August contract to $214.05 and up about $4 on the October contract to $210.90.
Cash trade through Thursday totaled about 44,000 head. Live steers sold from $220-234, and dressed steers sold from $365-372.
“Unless traders feel extremely comfortable with the amount of cattle they have committed to them through deferred delivery options, they need to buy more cattle this week, or this week’s volume is going to be extremely thin,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday closing comments.
Cash trade for the week ending June 29 totaled 52,528 head. Live steers averaged $230.13, and dressed steers averaged $369.42.
Slaughter through Thursday totaled about 475,000 head, compared to 452,000 head a week earlier. Total slaughter for a week earlier is estimated at 560,000 head. Actual slaughter for the week ending June 21 was 558,476 head. The average steer dressed weight was 937 lbs., 6 lbs. above the prior week.
Boxed beef prices are beginning their seasonal descent lower, with the Choice cutout down about $5 to $389.75 and the Select cutout down about a dollar to $378.44.
Feeder cattle
Feeder cattle futures were several dollars higher. The August contract gained about $6 to close at $309.50, and the September contract also gained about $6 to close at $309.37.
“Thankfully, just like the live cattle complex, the feeder cattle market is back to trading higher as traders have collectively seemed to agree that there’s been enough emotional reaction played out in the marketplace from the USDA announcement that the border was again going to open to Mexican cattle imports,” Stewart wrote on Wednesday. “The sheer change in market direction is especially helpful for the feeder cattle market’s morale as next week more online video auctions are set to take place and producers want to capitalize on the market’s strong tone and not be undermined by weaker trader sentiments.”
The CME Feeder Cattle Index gained $3.50 to close at $314.10.
Corn futures were higher, up about 20 cents on the July and September contracts to $4.31 and $4.20, respectively.
Missouri: Joplin Regional Stockyards in Carthage sold 5,686 head on Monday. Compared to a week earlier, feeder steers sold steady to $20 higher with the most gain on four- and five-weight calves. Feeder heifers sold from $7 lower to $8 higher. Benchmark steers averaging 720 lbs. sold from $325-335, averaging $329.31.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,000 head on Monday. Compared to a week earlier, feeder steers sold steady to $3 higher and feeder heifers sold $1-4 higher. Steer calves sold steady to $4 higher, and heifer calves sold $3-6 higher. Benchmark steers averaging 772 lbs. sold from $303-324, averaging $319.40.
South Dakota: Sioux Falls Regional in Worthing sold 1,420 head on Monday. Compared to two weeks earlier, feeder steers and heifers sold unevenly steady compared to the much larger offering at the previous sale. There was good demand for all weights of steers and heifers. Benchmark steers averaging 780 lbs. sold from $321-343, averaging $324.88. — Anna Miller Fortozo, WLJ managing editor
