Plagued by selloffs in the stock market, the cattle complex did not fare any better over the week.
“Unfortunately, I’d like to tell you that the market’s fundamentals will keep the complex from trading too much lower, but in chaotic times like this (when traders send the markets spiraling) market fundamentals—regardless of how strong they are—offer little support as traders are going to do whatever they please,” ShayLe Stewart, DTN livestock analyst, wrote in her Monday midday comments.
Live cattle futures sank lower over the week. The August contract lost $2.75 to close at $182.05, and the October contract lost $5.70 to close at $178.02.
“This is not the first time in the last year that futures have tanked from outside influences related to the economy,” the Cattle Report said on Thursday. “There will always be a overhang of economic news that will and can impact all commodities. In subtle ways, economic trends are influencing the price of beef every day.”
Cash trade through Thursday was about 55,000 head. Live steers sold from $187-194, and dressed steers sold from $294-306.
Cash trade for the week ending Aug. 4 was 69,589 head. Live steers averaged $194.82, and dressed steers averaged $309.72.
The national weekly direct beef type price distribution for the week of July 29 to Aug. 5 was the following on a live basis:
• Negotiated purchases: $194.90.
• Formula net purchases: $195.14.
• Forward contract net purchases: $189.47.
• Negotiated grid net purchases: $194.43.
On a dressed basis:
• Negotiated purchases: $309.61.
• Formula net purchases: $306.72.
• Forward contract net purchases: $293.55.
• Negotiated grid net purchases: $315.04.
Slaughter through Thursday was about 484,000 head, about 10,000 head higher than a week prior. Projected total slaughter for a week earlier is about 593,000 head. Actual slaughter for the week ending July 27 was 605,176 head. The average steer dressed weight was 921 lbs., 6 lbs. above the prior week.
Boxed beef prices stood steady over the week. The Choice cutout lost less than a dollar to close at $312.12, and the Select cutout gained about 50 cents to close at $298.03.
Feeder cattle
Feeder cattle futures nosedived over the week. The August contract lost nearly $11 to close at $242.37, and the September contract lost more than $14 to close at $237.42.
The CME Feeder Cattle Index lost about $5 to close at $252.84.
“The feeder cattle complex is continuing to chop in its sideways lower trend as the market simply hasn’t been able to recover from Monday’s sharp decline in both a technical sense and also from a sheer morale perspective,” Stewart wrote on Thursday.
Corn futures had better luck over the week and traded mostly sideways. The September contract lost 3 cents to $3.79, and the December contract lost a penny to $3.97.
Colorado: Winter Livestock in La Junta sold 387 head on Tuesday. Due to a lack of recent sales, an accurate comparison could not be made. A group of steers averaging 791 lbs. sold for $253.
Kansas: Winter Livestock in Dodge City, KS, sold 1,316 head on Wednesday. Compared to a week earlier, feeder steers sold steady and heifers over 700 lbs. sold steady to $7 higher. Benchmark steers averaging 768 lbs. sold from $236-269.50, averaging $263.11.
Missouri: Joplin Regional Stockyards in Carthage sold 2,080 head on Monday. Compared to the last auction, feeder steers under 625 lbs. sold $15-20 lower, with heavier weights selling $4-7 lower. Feeder heifers sold $8-12 lower. Benchmark steers averaging 768 lbs. sold between $250-260, averaging $255.30.
Montana: Miles City Livestock in Miles City sold 189 head on Tuesday. Feeder steers and heifers were too lightly tested to develop any market trend. A group of steers averaging 664 lbs. sold for $279.
Nebraska: Bassett Livestock Auction in Bassett sold 1,875 head on Wednesday. Compared to two weeks earlier, 900-lb. and 1,000-lb. steers sold $7-8 lower. Benchmark steers averaging 763 lbs. sold from $264-276, averaging $273.94.
New Mexico: Roswell Livestock in Roswell sold 504 head on Tuesday. Compared to the last auction, steer and heifer calves sold $15 lower on comparable sales. Steer and heifer yearlings had insufficient numbers for comparison. A group of steers averaging 751 lbs. sold for $235.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 3,800 head on Monday. Compared to a week earlier, steers and heifers sold $5-10 lower, with instances of up to $15 lower. Benchmark steers averaging 765 lbs. sold between $240-264, averaging $246.66. — Anna Miller, WLJ managing editor
