Friday markets
It was a lackluster day as traders were waiting for the Cattle on Feed report and focusing on the placement numbers. Trade closed mostly sideways, with live cattle closing higher and feeder cattle lower.
The Cattle on Feed report, which was released after the markets closed, showed cattle and calves on feed for feedlots with a capacity of 1,000 or more head totaling 11.2 million head on Aug. 1. The inventory was 1 percent above Aug. 1, 2021. Placements in feedlots during July totaled 1.77 million head, 2 percent above 2021, and marketings of fed cattle during July totaled 1.83 million head, 4 percent below 2021.
Live cattle closed slightly higher, with the August contract up 32 cents to $141.60 and the October contract up 50 cents to $145.25.
Cash trade was light on limited demand, with 3,144 head selling between $148-150. Dressed steers sold between $234-239, averaging $237.54. For the week, trade in the South was at $142. In Nebraska, live purchases traded from $145-148.50, and dressed purchases traded at $234. In the western Corn Belt, live purchases traded from $148-150, and dressed purchases traded at $234.
On the formula side, 32,200 head averaging 863 lbs. sold for $228.02.
“The big questions remaining this week are how many cattle traded, what delivery option (were) they bought with, and how are packers going to manage processing speeds moving ahead?” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “There are a couple of plants rumored to be dark next week, which could be packers’ way of slowing down throughput. Nevertheless, front-end supplies are extremely thin, and feedlots possess the lion’s share of the market’s leverage as packers want to continue a relatively strong processing pace as boxed beef prices are still rewarding, and international demand is strong.”
Slaughter for the day is expected to be 122,000 head, 3,000 above last week. Saturday’s slaughter is projected to be 40,000 head, bringing the weekly total to 661,000 head, 14,000 more than the prior week.
Boxed beef prices closed mixed on 73 loads, with the Choice cutout down 11 cents to $264.28 and the Select cutout up 47 cents to $237.94.
Friday’s Imported Meat Passed for Entry in the U.S. report shared that fresh beef imports totaled 21,569 metric tons, up 11 percent from a year ago, with Canada, Mexico, New Zealand and Brazil being the biggest importers.
Feeder cattle
Feeder cattle closed slightly lower, with the August contract down 2 cents to $181.50 and the September contract down 52 cents to $184.75. The CME Cattle Feeder Index was down 65 cents to $179.21.
Corn contracts closed higher, with the September contract up 6 cents to $6.26 and the December contract up 7 cents to $6.23.
“Aside from corn trending slightly higher, potentially the biggest reason feeder cattle could be trading lower heading into Friday’s afternoon is because there are concerns that Friday afternoon’s Cattle on Feed report could be bearish on placements,” Stewart wrote. “Given the big liquidation push that came in Texas during the month of July, it’s likely that placements are higher than what analysts assumed which would cast a bearish tone over the report. However, even with higher placements, the market could see a couple of days’ worth of doggish trade, but the reports won’t likely derail the strong technical support that the market possesses nor the demand that feeder cattle and calves are seeing.”
Kansas: Pratt Livestock in Pratt sold 3,417 head Thursday. Compared to last week, feeder steers 700-975 lbs. sold $4-5 higher, and steer calves 400-700 lbs. were $10-15 higher. Feeder heifers 600-900 lbs. traded $4-5 higher, and heifer calves 400-600 lbs. sold $7-15 higher. Benchmark steers averaging 773 lbs. sold between $183.50-191 and averaged $185.51.
Oklahoma: Apache Livestock in Apache sold 2,324 head Thursday. Compared to the previous auction, feeder steers sold $3-5 higher. Feeder heifers traded $1-6 higher. Steer calves sold $4-7 higher, and heifer calves were $5-8 higher. Benchmark steers averaging 712 lbs. sold between $175-181 and averaged $179.08.
South Dakota: Mitchell Livestock in Mitchell sold 1,107 head Thursday. Compared to the last auction, a steady to lower undertone was noted, as Dakotafest is taking place in Mitchell. Heavy steers 1,000-1,100 lbs. were $3-11 lower. Heifers 800-950 lbs. sold $1 higher. A group of steers averaging 859 lbs. sold for $184.10. — Charles Wallace, WLJ editor
