Coming back from a holiday-shortened week, the markets were scrambled on the board and hesitant to find much momentum. Now that one of biggest grilling days of the year is over, it remains to be seen what beef demand will look like heading into the heat of the summer.
Live cattle futures were lower over the week. The August contract lost about $3.70 to close at $182.25, and the October contract lost about $3.35 to close at $183.50.
Cash trade through Thursday afternoon was about 61,000 head. Live steers sold from $187-199, averaging $195, and dressed steers sold from $308-315, averaging $312.
“No one seems remotely concerned about the massive discount futures have to cash,” Cassie Fish, market analyst, wrote in The Beef on Thursday. “On the break, open interest has declined all week from last week’s 2024 high.”
Cash trade through July 7 totaled 51,223 head. Live steers averaged $197.36, and dressed steers averaged $313.65.
The national weekly direct beef type price distribution for the week of July 1-8 was the following on a live basis:
• Negotiated purchases: $196.53.
• Formula net purchases: $196.55.
• Forward contract net purchases: $189.78.
• Negotiated grid net purchases: $196.73.
On a dressed basis:
• Negotiated purchases: $313.60.
• Formula net purchases: $309.02.
• Forward contract net purchases: $295.61.
• Negotiated grid net purchases: $307.05.
Slaughter through Thursday was estimated at 476,000 head, compared to 359,000 head a week earlier. Total slaughter for a week earlier is projected at 517,000 head due to the holiday-shortened week. Actual slaughter for the week ending June 29 was 610,420 head. The average steer dressed weight was 911 lbs., 2 lbs. lower than the prior week.
Boxed beef prices were lower over the week. The Choice cutout dropped about $8 to $321.65, and the Select cutout lost about a dollar to close at $303.38.
“The rib primal has lost almost $50/cwt from its high last week and the loin is under big pressure as middle meats move to the back of the line of importance heading into the second half of the summer,” Fish said.
Feeder cattle
Feeder cattle futures dropped several dollars over the week. The August contract lost about $7 to close at $256.15, and the September contract also lost about $7 to close at $256.35.
The CME Feeder Cattle Index gained about $5 to close at $261.53.
“Between seeing the live cattle contracts trade lower and the fed cash cattle market soften by $2-4, traders didn’t seem to care that feeder cattle sales in the countryside were still strong; their only objective earlier in the week seemed to be working the feeder cattle market lower,” wrote ShayLe Stewart, DTN livestock analyst, in her Thursday midday comments.
Western Video Market (WVM) and Superior Livestock Auction hosted their big summer video sales over the week, with WVM set to sell about 161,000 head and Superior set to sell about 309,000 head.
Corn futures continue to hover at the $4 mark, with the July contract up 3 cents to $4.06 and the September contract down 5 cents to $4.
Missouri: Joplin Regional Stockyards in Carthage sold 10,622 head on Monday. Compared to a week earlier, feeder steers sold $2-9 higher with some light five-weight steers selling $15 higher. Feeder heifers under 800 lbs. sold $5-9 higher, with heavier weights selling steady to $2 lower. Benchmark steers averaging 777 lbs. sold from $256-278, averaging $266.83.
Nebraska: Bassett Livestock in Bassett sold 8,720 head on Wednesday. Compared to the last auction, steers 550-650 lbs. sold $5 lower, 600-700 lbs. traded steady to $4 higher and 900-1,000 lbs. traded $2-4 higher. Heifers 550-650 lbs. traded steady and there was no comparison for yearling weight offerings. Benchmark steers averaging 775 lbs. sold between $269-289.50, averaging $286.36.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,366 head on Monday. Compared to the last auction, feeder steers over 800 lbs. traded steady to $2 higher; under 800 lbs. sold $3-5 lower. Feeder heifers sold steady to $3 higher. Steer and heifer calves traded unevenly steady. Benchmark steers averaging 715 lbs. sold between $269-280, averaging $276.73.
South Dakota: Hub City Livestock in Aberdeen sold 4,353 head on Wednesday. An accurate comparison could not be established due to a lack of recent sales. Benchmark steers averaging 725 lbs. sold between $287.25-300, averaging $293.0. — Anna Miller, WLJ managing editor
