Thursday markets
Livestock contracts traded lower despite higher cash trade. Analysts released pre-report estimates for tomorrow’s release of the Cattle on Feed report, showing placements both higher and lower than last year.
The August 1 cattle on feed estimate averaged 100.8 percent, with an expected range of 100-101.1 percent of a year ago. Analysts predicted placements would be both higher and lower than last year, with a range of 96-101.3 percent of a year ago. The pre-report average was 98.9 percent. Marketing estimates ranged from 96-97.3 percent, averaging 96.6 percent.
ShayLe Stewart, DTN livestock analyst, wrote that she is concerned about the placement numbers, as last month saw an increase in sale receipts, especially in the South, due to drought.
“Given the widespread predictions of analyst’s placement figures, there’s a chance this report could be either bullish or bearish depending on which way placement numbers fall,” Stewart wrote.
Live cattle closed lower, with the August contract down 47 cents to $141.27 and the October contract down $1.10 to $144.75.
Cash trade was active, with 29,152 head selling between $142-150, averaging $145.29. Dressed steers averaged $234.10.
Live trade is being reported in parts of the South at midday for $142, $2 higher than last week’s weighted average. Northern dressed deals are being reported at $234, $4 higher than last week’s weighted average basis in Nebraska. Some asking prices remain firm at around $143-145 in the South and $240-plus in the North.
On the formula side, 35,000 head averaging 884 lbs. sold for $229.82.
Slaughter for the day is projected to be 126,000 head, 1,000 above last week.
Actual slaughter for the week ending Aug. 6 was 648,104 head. Dressed steer weights were 892 lbs.
Boxed beef prices closed mixed, with the Choice cutout up 5 cents to $264.39 and the Select cutout down 42 cents to $237.47.
USDA’s Weekly Export report for the Aug. 5-11 period showed net sales of 18,900 metric tons (mt), up 29 percent from the previous week and unchanged from the prior four-week average. The top three increases were in China (7,400 mt), Japan (5,300 mt) and South Korea (1,900 mt). Exports were 19,000 mt, down 9 percent from the previous week and 4 percent from the prior four-week average.
Feeder cattle
Feeder cattle closed lower, with the August contract down $1.72 to $181.52 and the September contract down $1.85 to $185.27. The CME Feeder Cattle Index was down 3 cents to $179.86.
Corn contracts closed higher, with the September contract up 4 cents to $6.19 and the December contract up 3 cents to $6.15.
New Mexico: Clovis Livestock in Clovis sold 1,475 head Wednesday. Compared to the previous auction, steer calves sold mostly $3-8 higher on comparable sales. Heifer calves were mostly steady to $3 higher, with instances of $6 higher. Feeder steers and heifers had no accurate comparison. A group of steers averaging 727 lbs. sold for $173.
Oklahoma: OKC West in El Reno sold 8,419 head Wednesday. Compared to the last auction, feeder steers sold $3-8 higher, and feeder heifers traded $3-5 higher. Steer calves over 450 lbs. were steady to $5 higher, and steer calves under 450 lbs., where tested, sold $10-20 higher. Heifer calves over 500 lbs. were steady, and under 500 lbs. sold $8-15 higher. Benchmark steers averaging 779 lbs. sold between $178-187 and averaged $184.74.
South Dakota: Hub City Livestock in Aberdeen sold 2,432 head Wednesday. There was no accurate comparison, as the last auction was three weeks ago. There was very good demand for all weights of cattle, with excellent demand for cattle coming off grass. Benchmark steers averaging 743 lbs. sold between $189-203.50, averaging $200.60. — Charles Wallace, WLJ editor
