It was fairly quiet following the Fourth of July, with most sale barns taking a much-needed holiday break.The market was also slow to get moving, with packers holding out until the end of the week.
Live cattle futures were slightly lower, with the August contract down about 70 cents to $174.57, and the October contract down a little over $2 to $177.42.
Cash trade for the week was slow moving. By Thursday morning, only about 15,000 head had sold. Live steers sold from $176-184, averaging $180.45. Dressed steers averaged $290.
“Packers will likely enter the market today securing inventory for an upcoming full slaughter week,” wrote the Cattle Report on Thursday morning. “They will hope to take advantage of a downturn in futures prices caused by a post-holiday lull in beef demand. While this is not unusual and often expected, it will not change the short supplies of fed cattle.”
Cash trade for the week ending July 2 totaled a little more than 50,000 head. Live steers averaged $181.44, and dressed steers averaged $289.49.
The national weekly direct beef type price distribution for the week of June 26-July 3 was the following on a live basis:
• Negotiated purchases: $181.14.
• Formula net purchases: $186.64.
• Forward contract net purchases: $173.28.
• Negotiated grid net purchases: $186.96.
On a dressed basis:
• Negotiated purchases: $289.36.
• Formula net purchases: $294.91.
• Forward contract net purchases: $265.57.
• Negotiated grid net purchases: $296.87.
Slaughter through Thursday totaled 336,000 head, compared to 502,000 head a week earlier, due to the holiday-shortened week. Projected slaughter for a week earlier is 644,000 head.Actual slaughter for the week ending June 24 was 649,478 head. The average dressed steer weight was 883 lbs.
“Seasonally, carcass weights bottom in May or June but this year they are continuing downward—meaning packers are picking off green cattle,” the Cattle Report wrote. “This is confirmed with the fall in quality grade last week.”
Boxed beef prices continue to decline. The Choice cutout lost about $8 to close at $319.87, and the Select cutout lost more than $6 to close at $289.97.
Feeder cattle
Feeder cattle futures were higher. The August contract gained close to $2 to close at $242.27, and the September contract gained over $1.50 to close at $245.32.
The CME Feeder Cattle Index gained over $4 to close at $230.26.
Corn futures have plummeted. The July contract lost close to 30 cents to $5.66, and the September contract dropped 34 cents to close under $5 at $4.99.
“In the real world, feeder cattle are scarce and prices are very strong,” wrote Cassie Fish, market analyst, in The Beef. “In the coming months, feedyard occupancy will drop to its lowest point since 2017 and tight numbers will be felt more acutely by all players in the cattle and beef industry.”
Most auction markets were closed for a holiday break. — Anna Miller, WLJ managing editor
