It was a wild trading week, with cattle futures shooting up triple digits early in the week and then tapering off in the middle of the week. Cash trade continued its ascent, with live and dressed deals several dollars higher.
Live cattle futures closed mixed, with the June contract up $3.78 to $178.77 and the August contract down 12 cents to $172.25.
Cash trade through Thursday totaled 71,150 head. Live steers sold between $180-194, averaging $190.31, and dressed steers sold between $295-300.50, averaging $299.39.
Cash trade for the week ending June 4 was 93,042 head. Live steers averaged $182.39, and dressed steers averaged $290.31.
“A light to moderate trade was reported in Nebraska and Iowa Wednesday with dressed deals marked at mostly $300, $10 higher than last week’s weighted averages, there was even a few head that sold as high as $304,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments. “Live sales in that area had a range of $189-191, $3-5 higher than last week’s weighted averages. Just a handful of business has been reported in the South this week with a range of $180-184, $3-7 higher than last week’s weighted averages.”
The national weekly direct beef type price distribution for the week of May 29-June 5 was the following on a live basis:
• Negotiated purchases: $182.19.
• Formula net purchases: $178.13.
• Forward contract net purchases: $175.26.
• Negotiated grid net purchases: $175.16.
On a dressed basis:
• Negotiated purchases: $290.40.
• Formula net purchases: $280.13.
• Forward contract net purchases: $267.44.
• Negotiated grid net purchases: $284.11.
Slaughter through Thursday was estimated to be 495,000 head. Projected slaughter for a week earlier was 573,000, down 52,000 head from the previous week due to the holiday-shortened week. Actual slaughter for the week ending June 8 was 625,035 head. The average dressed steer weight was 883 lbs., down 2 lbs. from the prior week.
Boxed beef prices were higher, with the Choice cutout up over $22 to $328.73 and the Select cutout up over $17 to $304.10.
“Boxed beef values are in hot pursuit of the cattle prices, printing this morning at $327.74, another new 2023 high, up $2.55 from yesterday afternoon,” wrote Cassie Fish, market analyst, in The Beef on Thursday. “Remember, June is typically the largest fed cattle slaughter month of the year, so retailers are used to plenty to pick from. Debate continues on this week’s slaughter estimate, still ranging from 620k to 640k head. Father’s Day, a solid beef consumption day, is a week from Sunday.”
Feeder cattle
Feeder cattle futures were higher, with the August contract up $4.73 to $238.65 and the September contract up $4.37 to $241.47. The CME Feeder Cattle Index was up $14.13 to $222.20.
“It doesn’t matter if you spent your time tracking Superior’s Corn Belt Classic sale or if you watched various sales throughout the country, feeder cattle prices continue to trek higher as buyers are worried about finding enough replacements to restock their empty pens later this year,” Stewart wrote on Thursday.
Corn futures were higher, with the July contract up 18 cents a bushel to $6.10 and the September contract up 4 cents to $5.28.
Kansas: Winter Livestock in Dodge City sold 1,734 head Wednesday. Compared to the previous auction, steers 475-1,000 lbs. sold $15-25 higher. Feeder heifers 600-750 lbs. sold $15-25 higher. There were not enough heifer calf sales for a market test. Benchmark steers averaging 762 lbs. sold between $222-233 and averaged $232.39.
Missouri: Joplin Regional Stockyards in Carthage sold 13,000 head on Monday. Compared to the last sale held two weeks earlier, feeder steers sold $7-14 higher and feeder heifers sold $10-15 higher. Benchmark steers averaging 775 lbs. sold from $216-229.50, averaging $222.62.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 10,500 head on Monday. Compared to the last sale two weeks prior, feeder steers sold $10-15 higher and feeder heifers sold $8-10 higher. Steer calves sold $10-20 higher, and heifer calves sold steady to $5 higher. Benchmark steers averaging 775 lbs. sold from $218.75-238.25, averaging $227.91.
South Dakota: Hub City Livestock in Aberdeen sold 5,270 head Wednesday. Compared to the last auction, steers 800-899 lbs. sold $10-15 higher, with instances up to $20 higher on 800-849 lbs. Heifers 650-699 lbs. and 750-799 lbs. sold $10-15 higher. Benchmark steers averaging 786 lbs. sold between $244.50-247.50 and averaged $245.84. — Charles Wallace, WLJ editor
