The cattle market was able to find some support following a tumultuous week in the general marketplace.
Live cattle futures made some modest gains over the week, with the August contract up $2 to $184.05 and the October contract up about $2.75 to $180.75.
“Traders seem to be impatiently tapping their feet as they wait for the cash cattle market to trade,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments. “One could logically think traders would find it supportive that beef exports marked a marketing year high Thursday morning; but the only thing that seems to matter is what the cash cattle market is going to do as traders currently have ample other fundamental supportive factors with exports and stronger midday boxed beef prices.”
Cash trade through Thursday totaled less than 6,000 head. Live steers averaged $190, and dressed steers averaged $298.
“Last week’s lower cash fed cattle prices coupled with a modest improvement in boxed beef values this week has halted the deterioration in packer margins,” Cassie Fish, market analyst, wrote on Wednesday in The Beef. “But that’s not stopping bulls from predicting cash cattle prices will regain some of their lost money this week. Others are calling cash steady at best this week, as more cattle are showing up in the north.”
Cash trade through Aug. 11 totaled 76,196 head. Live steers averaged $191.59, and dressed steers averaged $304.23.
Slaughter through Thursday totaled 476,000 head, about 8,000 head short of a week earlier. Total slaughter for a week earlier is estimated at 591,000 head. Actual slaughter for the week ending Aug. 3 was 592,526 head. The average steer dressed weight was 923 lbs., 2 lbs. above the prior week.
Boxed beef prices were able to move higher over the week. The Choice cutout gained over $4 to $316.94, and the Select cutout gained $4 to close at $302.03.
Feeder cattle
Feeder cattle futures were able to regain some of their losses over the week. The August contract gained $4.35 to close at $246.72, and the September contract gained $6.25 to close at $243.67.
The CME Feeder Cattle Index sank lower, down $6.50 to $246.34.
Stewart noted, “If the cash cattle market trades steady to somewhat higher, and that positively influences the live cattle contracts, then it’s likely feeders will turn higher again this week.”
Corn futures traded mostly sideways, with the September contract down 4 cents to $3.75 and the December contract unchanged at $3.97.
Kansas: Winter Livestock in Dodge City sold 551 head on Wednesday. Compared to the last auction, feeder steers under 400 lbs. were not well tested and over 400 lbs. sold steady. Heifers under 600 lbs. were not well tested, and 600-750 lbs. sold $5 higher.
Missouri: Joplin Regional Stockyards in Carthage sold 5,100 head on Monday. Feeder steers sold steady to $5 higher with the exception of lightweight four-weight and three-weight calves selling up to $30 higher. Benchmark steers averaging 755 lbs. sold from $249.50-261, averaging $251.77.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,300 head on Monday, including 1,000 head for a special Angus sale. Feeder steers sold $2-6 higher and steer calves sold $10 higher in a light test. Feeder heifers sold steady to $4 higher and heifer calves sold $7-10 higher.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,342 head on Monday. Compared to two weeks earlier, there was a limited number of lightweight steers, but 800-lb. steers sold $7-10 lower. Heifers weighing 700 lbs. sold steady to $2 lower and 800-900 lbs. sold $12-14 lower. Benchmark steers averaging 774 lbs. sold from $253-264, averaging $255.94. — Anna Miller, WLJ managing editor
