Live and feeder cattle futures closed several dollars higher this week, with strong regional auction prices reflecting continued optimism in the feeder market.
Live cattle futures were several dollars higher over the week. The August contract gained over $3 to close at $223.67, and the October contract also gained over $3 to close at $220.32.
Cash trade through Thursday totaled about 15,000 head. Live steers sold from $231-242, and dressed steers sold for $380.
“There’s been some light sales noted in the fed cash cattle market, but not enough volume has traded yet to say that any sort of trend can be noted,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Cash trade for the week ending July 13 totaled 77,827 head. Live steers averaged $237.43, and dressed steers averaged $379.30.
Slaughter through Thursday was estimated at 458,000 head, compared to 464,000 head a week earlier. Total slaughter for a week earlier is projected at 568,000 head. Actual slaughter for the week ending July 5 was 474,064 head. The average steer dressed weight was 933 lbs., the same as the prior week.
Boxed beef prices plummeted lower. The Choice cutout lost about $13 to close at $373.28, and the Select cutout lost about $20 to close at $353.84.
“It comes as no surprise that boxed beef prices are trading lower as the seasonal regression is well underway for the third quarter,” Stewart said.
Feeder cattle
Feeder cattle futures were also several dollars higher over the week. The August contract gained just under $4 to close at $325, and the September contract gained over $4 to close at $325.42.
The CME Feeder Cattle Index gained $5.15 to close at $321.91.
“The deferred feeder cattle contracts are continuing to inch higher as traders are acknowledging the fact that there isn’t going to be an overabundance of supply anytime in the near future,” Stewart noted.
Corn futures were modestly higher, up 3 cents on the September contract to $4.02 and up 5 cents to $4.21 on the December contract.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head on Monday. Compared to a week earlier, feeder steers under 750 lbs. sold $5-10 higher with heavier weights selling steady. Feeder heifers sold steady to $7 higher. Benchmark steers averaging 763 lbs. sold from $321-340, averaging $336.36.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 7,000 head on Monday. Compared to the last sale held two weeks earlier, feeder steers sold $10-20 higher and steer calves sold $15-25 higher. Feeder heifers and heifer calves sold $10-25 higher. Benchmark steers averaging 728 lbs. sold from $324-359, averaging $335.89.
South Dakota: Sioux Falls Regional in Worthing sold 3,102 head on Monday. Compared to two weeks earlier, feeder steers and heifers sold $10-20 higher. Benchmark steers averaging 765 lbs. sold from $344-347.50, averaging $345.35. — Anna Miller Fortozo, WLJ managing editor
