Last week showed gains for both live and feeder cattle futures, but faced some pushback on Thursday from higher grain futures and lean hogs trading limit down. Boxed beef prices rose throughout the week, indicating strong demand ahead of Labor Day.
Live cattle contracts were slightly higher than the week prior. August live cattle futures closed at $122.57—a 50-cent gain for the week—and the October contract closed at $127.57, up 37 cents for the week.
Cash trade was modest, with live steers selling between $121-125 and dressed steers between $197-198. In the Texas Panhandle, a few live purchases traded at $122 and Kansas had some trade at $121. In Nebraska, live purchases have traded steady to $1 higher at $125 and dressed purchases traded $2 higher at $198 compared to the prior week. Cash trade through the last week of July totaled 77,209 head.
During its weekly sale, the Fed Cattle Exchange sold 1,393 head from Texas, which traded between $118-122 with a weighted average price of $120.33. The exchange listed a total of 6,078 head, including cattle from Kansas, although none of the state’s lots sold.
Slaughter for Thursday was expected to be 121,000 head, bringing the weekly slaughter to 480,000 head—3,000 head higher than the previous week. Slaughter through the last week of July is expected to total 649,000 head. Actual slaughter for the week ending July 24 was 655,063 head.
Boxed beef prices climbed higher last week ahead of the upcoming holiday. The Choice cutout was higher $14.12 for the week, closing at $292.58, and the Select cutout was higher $14.58 to $273.77.
“The potential for larger sales volumes in the cash market being accompanied with larger slaughter volumes is the answer to surging box prices that have already risen $10/cwt this week,” The Cattle Report remarked.
“The beef processing industry is responding to the need for more capacity at the edges by making small incremental changes that will slowly add capacity but without any new plants. Quickly adding $10-20/cwt to the cash markets for cattle might reverse the herd liquidation that is bad for everyone in the beef industry.”
Feeder cattle
Corn futures were trading lower throughout the week but rebounded on Thursday, chipping away at some of the gains for feeder cattle. The September corn contract closed at $5.55 and December closed at $5.53 a bushel.
Feeder cattle rallied throughout the week but experienced losses over $1 on Thursday, erasing any gains. The August contract closed at $157.65, down 52 cents for the week, and the September contract closed at $161.15, down 65 cents. The CME Feeder Cattle Index closed at $158.80, $4.76 higher than the previous week.
Superior Livestock Auction’s Video Royale sale in Winnemucca, NV, took place Aug. 2-6. Superior offered over 184,000 head of calves, feeder cattle and breeding stock. A lot of 700 feeder steers averaging 760 lbs. from Glaser Land & Livestock in Nevada sold for $169 with delivery in September. Riverbend Ranches-Commercial Division in Wyoming sold a lot of 412 spayed feeder heifers averaging 825 lbs. with source and age verification, NHTC, and other value-added programs for $170.50, for delivery from Sept. 10-Oct. 1. A lot of 80 value-added NHTC weaned steer calves from Oxbow Ranch in Oregon averaging 600 lbs. with source and age verification sold for $172, with delivery in October.
Missouri: Ozarks Regional Stockyards sold 3,006 head Tuesday. Compared to the previous sale, steer and heifer calves traded mostly higher, with spots $4 higher. There were too few yearlings the week prior for a market trend, but undertones were steady to firm. Benchmark steers averaging 772 lbs. sold between $149-157, averaging $154.46.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 6,999 head Monday. Compared to the week earlier, feeder steers and heifers sold steady to $3 lower. Steer and heifer calves sold $2-5 lower. Benchmark steers averaging 757 lbs. sold between $144-163.50, averaging $151.85.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 2,071 head Monday. Compared to the prior sale, feeder steers and heifers sold unevenly steady. Demand was good and several lots were sold due to drought in the North. Benchmark steers averaging 735 lbs. sold between $157-164. — Charles Wallace, WLJ editor
