The cattle market continued its higher note over the week, with futures climbing higher and cash trade selling steady to higher with a week earlier.
Live cattle futures traded several dollars higher over the week, with the June contract up about $3.40 to $137.05 and the August contract up $3 to $137.20.
“This atypical June strength in futures is casting a much more positive outlook for this summer than thought just a few weeks ago,” wrote Cassie Fish, market analyst, in The Beef. “This week’s action has taken futures back to levels not seen since late April.”
Cash trade through Thursday totaled about 66,500 head and sold for about $2 higher than a week earlier. Live steers sold mostly from $136-144, and dressed steers sold from $223-230.
Cash trade for the first week of June totaled 84,397 head. Live steers averaged $138.59, and dressed steers averaged $222.25.
The national weekly direct beef type price distribution for the week of May 23 to June 6 was the following on a live basis:
• Negotiated purchases: $138.25.
• Formula net purchases: $142.05.
• Forward contract net purchases: $148.55.
• Negotiated grid net purchases: $140.86.
On a dressed basis:
• Negotiated purchases: $222.33.
• Formula net purchases: $225.18.
• Forward contract net purchases: $223.70.
• Negotiated grid net purchases: $230.19.
According to the Daily Livestock Report, slaughter has maintained a 15 percent increase over last year through the beginning of June. Slaughter through Thursday is projected at a sizable 503,000 head, compared to 381,000 head the same time a week earlier. Slaughter for that week is estimated at 603,000 head. Actual slaughter for the last week of May totaled 641,369 head.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 81.2 percent and dressed weights slightly higher to 858.5 lbs.
Choice boxed beef prices saw some gains over the week, while the Select cutout traded sideways. The Choice cutout gained $4.45 to close at $271.10, and the Select cutout lost 2 cents to close at $249.61.
“Beef demand stumbled in May but has rebounded and even though the ‘edge is off middle meat demand’ due to nose bleed prices at retail, cutout values are still their third highest in history for June,” Fish said.
Feeder cattle
“Thankfully, the momentum that fueled the live cattle complex higher hasn’t abandoned the market come Thursday, and given that the live cattle complex is still trading stronger, feeders are moving ahead with strong fundamental and technical support,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
Feeder cattle futures had a good week, with the August contract up a little over $3 to $176.02 and the September contract up $1.90 to $177.37.
The CME Feeder Cattle Index gained over $6 to close at $159.80.
Corn futures regained their losses over the week, with the July contract up 43 cents to $7.73 and the September contract up 25 cents to $7.29.
“Rain forecast improved in some of the worst areas of drought,” the Ag Center wrote in the Cattle Report. “The first signs of improving pasture conditions should be a decline in the number of cull cows hitting auction markets across the country accompanied by a slowdown in placements of cattle into the feedyard. Price signals are telling stocker operators to wait to market cattle and market them at heavier weights.”
Kansas: Winter Livestock in Dodge City sold 1,051 head on Wednesday. Compared to a week earlier, steers 400-950 lbs. sold $10-13 higher on light receipts. Heifers 400-940 lbs. sold $7-12 higher on light receipts. Benchmark steers averaging 667 lbs. sold between $169-176, averaging $174.11.
Missouri: Joplin Regional Stockyards in Carthage sold 10,500 head on Monday. Compared to a week earlier, at the mid-session, feeder steers traded steady, and feeder heifers traded $4-7 higher. Benchmark steers averaging 769 lbs. sold between $156-168, averaging $160.49.
Nebraska: Tri-State Livestock in McCook sold 550 head Monday. There was no comparison to the previous auction, but demand was good. A group of steers averaging 814 lbs. sold for $161.25.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,000 head on Monday. Compared to two weeks earlier, at the mid-session, feeder steers sold $5-8 higher, and feeder heifers sold $6-12 higher. Steer calves sold $10-12 higher, and heifer calves sold $2-6 higher.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 7,256 head Monday. Compared to the previous auction, steers sold $3-8 higher, except 650-700 lbs., which traded steady to $3 lower. Heifers sold $4-8 higher, except 950-1,000 lbs., which were steady to $1 higher. Benchmark steers averaging 717 lbs. sold between $170-186.50 and averaged $175.66. — Anna Miller, WLJ managing editor
