It was another week of stalled cash trade and futures were unable to lend much support. With the summer grilling season officially started, boxed beef prices have begun their seasonal incline.
Live cattle futures closed lower over the week. The June contract lost $1.75 to close at $181.77, and the August contract lost about $3.20 to close at $177.87.
Cash trade through Thursday was limited, with less than 10,000 head sold. Live steers sold from $185-188, and there was no trend for dressed steers.
Cash trade for the week ending June 2 totaled 73,431 head. Live steers averaged $189.02, and dressed steers averaged $301.11.
The national weekly direct beef type price distribution for the week of May 27 to June 3 was the following on a live basis:
• Negotiated purchases: $188.91.
• Formula net purchases: $190.70.
• Forward contract net purchases: $191.68.
• Negotiated grid net purchases: $189.49.
On a dressed basis:
• Negotiated purchases: $301.28.
• Formula net purchases: $301.19.
• Forward contract net purchases: $296.59.
• Negotiated grid net purchases: $299.96.
Slaughter through Thursday totaled about 489,000 head. Total slaughter for the week prior is projected at just 450,000 head due to Memorial Day weekend. Actual slaughter for the week ending May 25 was 602,136 head. The average steer dressed weight was 920 lbs., 1 lb. lower than the previous week.
“The fed cattle portion of the weekly slaughter continues to make a larger percentage of the total slaughter than prior years with cow slaughter of both dairy and beef cows in a steep decline,” the Cattle Report wrote on Thursday.
Boxed beef prices experienced modest gains over the week. The Choice cutout gained $2.17 to close at $316.21, and the Select cutout gained $1.69 to close at $300.83.
“The cutout made new highs this morning, likely as end users return to work to find limited offerings thanks to reduced throughput,” Fish wrote on Monday. “A typical year would see June fed cattle slaughter and beef production at its annual high, or close to it. This is far from a typical year.”
Feeder cattle
Feeder cattle futures were sent lower over the week. The August contract lost about $6 to close at $252.85, and the September contract lost about $6.50 to close at $254.10.
“Before you throw in the towel and begin to believe that the overall market is weakening, I’d encourage you to look at the CME Feeder Cattle Index as best represents buyer demand in the countryside,” ShayLe Stewart, DTN livestock analyst, wrote in her Thursday midday comments.
“It’s rather impressive that just last September the CME Feeder Cattle Index topped around $254, and that as of Wednesday afternoon the index closed at $250.86.”
The CME Feeder Cattle Index gained $1.26 to close at $250.54.
Corn futures traded sideways, with the July contract up 4 cents to $4.52 and the September contract unchanged at $4.57.
“Buyer demand is still incredibly strong and even though the futures complex is enduring some weakness, the market’s fundamentals are still prevailing,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 13,500 head on Monday. Compared to the sale two weeks earlier, feeder steers sold steady to $4 higher. Feeder heifers sold from $6 lower to $8 higher on heavier weights. Benchmark steers averaging 760 lbs. sold from $249-260, averaging $257.44.
New Mexico: Clovis Livestock in Clovis sold 1,764 head on Wednesday. Compared to the last auction, feeder steers and heifers were mostly steady. A group of steers averaging 757 lbs. sold for $238.
Oklahoma: Oklahoma National Stockyards sold 7,500 head on Monday. Compared to the sale last held two weeks earlier, steers over 750 lbs. sold steady to $3 higher and steers under 750 lbs. sold $3-7 higher. Heifers over 650 lbs. sold $1-3 lower, and heifers under 650 lbs. sold $3-7 higher. Benchmark steers averaging 760 lbs. sold from $244-262, averaging $258.64.
South Dakota: Hub City Livestock in Aberdeen sold 3,137 head on Wednesday. Compared to the last auction, steers 1,000-1,049 lbs. sold steady to $2 higher. The best test was on heifers 800-849 lbs. which were steady. All other weight classes of steers and heifers were not well tested. A group of steers averaging 689 lbs. sold between $284-295, averaging $294.06. — Anna Miller, WLJ managing editor
