The big news for the livestock complex this week was the announcement that USDA would again close the southern border to livestock imports following a new case of New World screwworm in Mexico.
Live cattle futures were several dollars higher, up about $5 on the August contract to $219.22 and up about $7 on the October contract to $217.07.
Cash trade through Thursday totaled less than 5,000 head. Live steers sold from $232-235, and dressed steers sold for $372.
Cash trade for the week ending July 6 totaled 51,945 head. Live steers sold for $230.02, and dressed steers sold for $369.41.
Slaughter through Thursday totaled about 464,000 head. Total slaughter for a week earlier is estimated at 474,000 head due to the holiday-shortened week. Actual slaughter for the week ending June 28 was 561,022 head. The average steer dressed weight was 933 lbs., 4 lbs. below the prior week.
Boxed beef prices were lower over the week, down a few dollars on the Wednesday afternoon USDA report to $386.35 on the Choice cutout and $373.27 on the Select cutout.
“Upon seeing that boxed beef prices are lower again today, I think it’s safe to say that the seasonal downward trend of the third quarter for boxed beef prices has been set into motion,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
On July 9, the Trump administration announced a 50% tariff on Brazil beginning Aug. 1. “No one can guess how the politics of this will turn out,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “If it does go into effect, tariffs on frozen beef 90s will increase from the current 10%, which has been quickly and efficiently absorbed by the market to 50%, so another 40% penalty.”
This year, she noted, Brazil became the No. 1 seller of manufacturing beef to the U.S., most of which is used for fast food burger patties. Currently, imported 90s are cheaper than domestic 90s.
“It’s very possible that the market resolves at least part of this with imported prices narrowing the gap on the domestic prices or even going premium,” Fish said. “It’s happened before. Or perhaps the entire complex keeps driving higher.”
Feeder cattle
The feeder cattle complex moved higher following the news that USDA was again closing the southern border to feeder cattle imports.
Feeder cattle futures soared higher, up more than $10 apiece on the August and September contracts to $321.27 and $321.22, respectively.
The CME Feeder Cattle Index gained about $2 to close at $316.76.
“We know that domestic supplies are tight, and buyer demand remains red hot, which is why traders remain confident in continuing to push the contracts higher,” Stewart said.
Corn futures traded lower, down about 24 cents on the July contract to $4.07 and down 21 cents on the September contract to $3.99.
Several sale barns were closed for the Fourth of July holiday.
Missouri: Joplin Regional Stockyards in Carthage sold 5,864 head on Monday. Compared to a week earlier, feeder steers under 600 lbs. sold steady to $8 lower. Heavier weights sold mostly steady to $6 higher, with heavy eight-weights selling up to $15 higher. Feeder heifers sold steady to $5 higher, with seven- and eight-weights selling $15 higher. Benchmark steers averaging 778 lbs. sold from $314.50-342.50, averaging $320.47.
Oklahoma: Tulsa Livestock in Tulsa sold 1,259 head on Monday. Compared to the last auction, steer calves sold $10-15 higher, with instances of up to $20 higher. Heifer calves sold $5-10 higher, with instances of up to $15 higher. Benchmark steers averaging 702 lbs. sold for $335-348.50, averaging $345.60.
Texas: Lonestar Stockyards in Wildorado sold 1,082 head on Tuesday. Compared to the last auction two weeks earlier, steer calves traded mostly $5 higher. Heifer calves traded mostly $5 lower. There were not enough comparable sales on yearlings, but a lower undertone was noted. Benchmark steers averaging 703 lbs. sold for $324-332, averaging $326.16. — Anna Miller Fortozo, WLJ managing editor
