Thursday markets
Cash trade was somewhat active, with trade in the South 50 cents to $1 higher and asking bids in Nebraska at $143. The cattle complex closed slightly lower.
Live cattle closed lower on nearby contracts and higher on deferred contracts, with the August contract down 20 cents to $137.70 and the October contract down 30 cents to $143.65.
Cash trade was somewhat active, with 22,418 head selling between $136-146, averaging $139.59. Dressed steers averaged $226.13.
“Even though the live cattle contracts aren’t trading higher, it’s exciting to see that a light trade has developed in parts of the South at $135.50-136 which is 50 cents to $1 higher than both this week’s trade and last week’s business,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
“As packers show the cash cattle market more interest, the conclusion that’s seeming somewhat undeniable is that packers are short bought and actually need cattle. The big question now is: was last week’s trade the low for the summer?” Stewart continued.
On the formula side, 34,400 head averaging 867 lbs. sold for $222.09.
Slaughter for the day is projected to be 125,000 head, 4,000 head higher than last week.
Actual slaughter for the week ending July 23 was 663,390 head. Steer dressed weights were 893 lbs.
Boxed beef prices closed lower on 109 loads, with the Choice cutout down $1.66 to $266.28 and the Select cutout down 95 cents to $240.35.
USDA’s Weekly Export report for the July 22-28 period showed net sales of 12,000 metric tons (mt), down 52 percent from the previous week and 30 percent from the prior four-week average. Increases were primarily for South Korea (2,900 mt), Japan (2,400 mt), Canada (1,800 mt), Taiwan (1,100 mt) and the Philippines (900 mt). Exports were 18,500 mt, down 9 percent from the previous week and 5 percent from the prior four-week average.
Feeder cattle
Feeder cattle closed slightly lower, with the August contract down 27 cents to $179.07 and the September contract down 32 cents to $182.57. The CME Feeder Cattle Index was down 29 cents to $173.75.
Corn closed higher, with the September and December contracts up 10 cents a bushel to $6.02 and $6.06, respectively.
New Mexico: Clovis Livestock in Clovis sold 1,531 head Wednesday. No comparison is available, as there has not been an auction in a few months. Benchmark steers averaging 734 lbs. sold between $166-173, averaging $168.31.
Oklahoma: OKC West in El Reno sold 7,032 head Wednesday. Compared to the previous auction, feeder steers traded $5-8 higher. Feeder heifers sold $3-6 higher. Benchmark steers averaging 771 lbs. sold between $173-178.50 and averaged $176.82.
Texas: Lonestar Stockyards in Wildorado sold 1,420 head Tuesday. Compared to the last auction, feeder steers and heifers traded $1-4 higher. Steer and heifer calves were unevenly steady on limited comparable sales from the previous week. Benchmark steers averaging 785 lbs. sold between $165.50-169, averaging $167.34. — Charles Wallace, WLJ editor
