It was a fairly uneventful week in the cattle markets. On the live cattle side of things, cattle traded sideways on the board. Feeder demand is beginning to pick up and the summer video sale season has officially kicked off.
Live cattle futures were modestly higher over the week. The June contract gained about $1.90 to close at $183.65, and the August contract gained about 45 cents to close at $178.32.
Cash trade through Thursday was slow to get started and totaled about 30,000 head. Live steers sold from $185-195, and dressed steers sold from $301-307.
“Packer interest could improve on Thursday, but it wouldn’t be surprising to see cattle wait to trade until Friday as prices are expected to be at least steady this week, if not a little higher depending on packers’ needs,” ShayLe Stewart, DTN livestock analyst, wrote in her Wednesday closing comments.
Cash trade through June 9 totaled 64,120 head. Live steers averaged $188.90, and dressed steers averaged $301.10.
Slaughter through Thursday was projected at 489,000 head. Total slaughter for the week prior is estimated at 614,000 head. Actual slaughter for the week ending June 1 was 538,910 head. The average steer dressed weight was 924 lbs., 4 lbs. higher than the prior week.
“Packers have made adjustments in attempt to minimize red ink by limiting weekly throughput since Memorial Day week and for the most part, ignoring Saturday schedules,” wrote Cassie Fish, market analyst, in The Beef on Wednesday. “But cattle feeders have zero urgency to sell cattle, as evidenced by record carcass weights and record Choice plus Prime grading for late May and early June.”
Boxed beef prices were mixed over the week. The Choice cutout gained over $2 to close at $318.31, and the Select cutout lost about $1.60 to close at $299.25.
“Wholesale boxed beef values are likely topping and this week, ends cuts and Select cuts in general, are already slipping,” Fish said. “’Tis the season for a top and no one will be surprised to see lower prices over the next several weeks. The interesting part will be how much lower.”
Feeder cattle
Feeder cattle futures traded several dollars higher over the week. The August contract gained about $4.60 to close at $257.47, and the September contract gained $4.20 to close at $258.30.
The CME Feeder Cattle Index gained over $5 to close at $255.86.
Corn futures closed higher. The July contract gained 6 cents to close at $4.58, and the September contract gained 6 cents to close at $4.63.
Superior Livestock Auction held their Corn Belt Classic sale in Nebraska June 10-11, selling just about 60,000 head of cattle.
“Even though the board has been under some pressure as of late, fundamentally the market continues to thrive as buyers are showing continued interest and willingness to support the market at its historically high price point,” Stewart said on Thursday.
Missouri: Joplin Regional Stockyards in Carthage sold 8,000 head on Monday. Compared to a week earlier, feeder steers under 750 lbs. sold steady at the mid session, with heavier weights selling steady to $3 higher. Feeder heifers sold from $6 lower to $2 lower. Benchmark steers averaging 759 lbs. sold from $250-264, averaging $261.08.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,500 head on Monday. At the mid session, compared to a week earlier, feeder steers over 850 lbs. sold from $1-6 higher. Feeder steers under 850 lbs. sold $2-7 lower, and steer calves sold $5-10 higher. Feeder heifers sold steady to $4 higher, and heifer calves sold $4-9 lower.
South Dakota: Sioux Falls Regional in Worthing sold 9,126 head on Monday. Compared to the last sale two weeks ago, steers 800-950 lbs. sold $9-12 higher, with instances sharply higher in 800 lbs. steers. Heifers 700 lbs. sold $7 to sharply higher, 800 lbs. were $1-6 higher and 850-900 lbs. traded steady to $2 higher. Benchmark steers averaging 726 lbs. sold between $272-300.75, averaging $287.16. — Anna Miller, WLJ managing editor
