Despite the news of additional New World screwworm detections in the U.S., the market traded higher over the week.
Live cattle futures found several-dollar gains. The June contract gained $4.85 to close at $251.47, and the August contract gained $4.82 to close at $242.67.
“So far, the market has digested the news of the past week and decided it was not bearish,” wrote Robin Schmahl, DTN contributing analyst, in his early Thursday comments. “The bearish aspect would be if beef demand were to decline.”
Cash trade through Thursday totaled only about 4,000 head. There was no trend noted for live steers. Dressed steers sold for $402.
“Packers disappeared mid-week hoping to show their needs were not immediate nor critical,” the Cattle Report wrote on Wednesday.
Cash trade for the week ending June 7 totaled 78,391 head. Live steers averaged $256.62, and dressed steers averaged $404.74.
Slaughter through Thursday totaled 421,000 head, compared to 428,000 head a week earlier. Total slaughter for a week earlier is expected at 533,000 head. Actual slaughter for the week ending May 30 was 451,309 head. The average steer dressed weight was 973 lbs., 5 lbs. lower than the previous week.
Boxed beef prices closed lower over the week. The Choice cutout lost $2.65 to close at $393.21, and the Select cutout lost more than $11 to close at $373.25.
Feeder cattle
Feeder cattle futures gained their momentum back over the week. The August contract gained over $17 to close at $359.65, and the September contract also gained over $17 to close at $356.52.
“Unlike the live cattle contracts, the feeder cattle contracts are further away from their resistance, which means the market should be able to trade higher with ease if traders continue to believe that’s the way the market should go,” ShayLe Stewart, DTN livestock analyst, wrote in her Wednesday midday comments.
The CME Feeder Cattle Index gained $3.80 to close at $368.06.
Corn futures traded lower, down 20 cents on the July contract to $4.11 and also down 20 cents on the December contract to $4.39.
Missouri: Joplin Regional Stockyards in Carthage sold 8,500 head on Monday. Compared to a week earlier, at the mid-session, feeder steers sold steady to $10 higher. Feeder heifers sold $5-15 higher. Benchmark steers averaging 774 lbs. sold from $360-380, averaging $363.14.
Nebraska: North Platte Stockyards Livestock in North Platte sold 525 head on Tuesday. Due to a lack of recent sales, a trend could not be established, but demand was moderate. A group of steers 842 lbs. sold from $350-354.50, averaging $353.70.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,800 head on Monday. Compared to a week earlier, feeder steers sold steady to $5 higher, with instance of $10 higher on heavier weights. Feeder heifers sold $2-8 higher. Steer calves sold $10-20 lower, and heifer calves sold $2-8 lower. Benchmark steers averaging 767 lbs. sold from $365-370, averaging $368.02.
South Dakota: Sioux Falls Regional in Worthing sold 929 head on Monday. Compared to the previous sale, feeder steers and heifers were not well compared on the much lighter offering. A group of benchmark steers averaging 768 lbs. sold from $376-378, averaging $377.58.
Texas: Giddings Livestock in Giddings sold 746 head on Monday. Compared to the last auction, lightweight feeder steers and heifers weighing under 400 lbs. were $15-20 lower on a limited test. Feeder steers over 400 lbs. sold $2-5 higher. Feeder heifers over 400 lbs. were fully steady to $2 higher. A group of steers averaging 730 lbs. sold from $350-375, averaging $361.72.
Utah: Producers Livestock in Salina sold 475 head on Tuesday. Compared to the last auction, feeder cattle sold sharply lower on calves and yearlings. Benchmark steers averaging 760 lbs. sold from $330-351, averaging $344.77. — Anna Miller Fortozo, WLJ managing editor
