Tuesday markets
The cattle complex has moved away from shifts in the hog and grain sectors affecting cattle prices, with live cattle experiencing higher numbers today and feeder cattle closing mixed. In this week’s USDA Crop Progress report, corn conditions improved 2 percent in the good-to-excellent rating to 64 percent.
Live cattle traded higher through the day, with the August contract up 65 cents to $123.65 and the October contract closing also up 65 cents to $128.12.
Cash trade was a paltry 500 head—not enough for a market trend—negotiated at a standstill for Nebraska and the western Corn Belt. On the formula side, 19,100 head averaging 848 lbs. sold for $198.55. The new USDA National Weekly Direct Beef Type Price Distribution report showed for the week ending Aug. 9, live basis distribution weighted average for negotiated trade at $123.97, formula net at $123.24, forward contract net at $125.09 and negotiated grid net at $122.96. Dressed weighted average for negotiated trade was $198.23, formula net at $195.91, forward contract net at $190.30 and negotiated grid net at $197.48.
“Cash cattle interest remains subdued with packers showing little interest in stepping into the market early,” Rick Kment, DTN contributing analyst, wrote in the midday comments. “With light trade last week, some thought that packers may become more aggressive than usual through the first half of the week. But, at this point, it appears that the cash cattle trade may follow a more normal trading pattern.”
Slaughter for the day is expected to be 120,000 head—2,000 below last week’s total.
“The early expectation is for the weekly slaughter to be up this week,” The Cattle Report wrote. “Last week’s paltry 641,000 head was short enough to continue the surge in box prices and assure record margins at the beef plants. No deliveries were posted for the August cattle contract and cattle owners will test and hold for higher prices this week aided by sharply higher futures prices.”
Boxed beef prices continued to climb on 128 loads, with the Choice cutout up $5.52 to $305.32 and the Select cutout up $3.80, closing at $284.61.
Feeder cattle
Feeder cattle closed the day mixed, with the August contract up 2 cents to $159.32 and September down 15 cents, closing at $163.05. The CME Cattle Index was lower 25 cents to $156.30.
Corn traded modestly lower, with the September contract down a penny to $5.49 and December down a fraction of a cent, closing at $5.53 a bushel.
New Mexico: Roswell Livestock in Roswell sold 410 head on Monday. Compared to last week, there was no accurate comparison on steer and heifer calves or feeders due to limited receipts, but a higher undertone was noted, mostly on 400-550-lb. offerings. A small group of steers averaging 660 lbs. sold for $156.
Crop Progress
In this week’s USDA Crop Progress report, corn conditions improved 2 percent in the good-to-excellent rating to 64 percent. However, the major corn-producing states of Iowa, Nebraska and North Dakota showed a 1 percent decline in the good-to-excellent rating. Corn silking was up 4 percent from last week, with 95 percent.
Spring wheat harvest has now advanced to 38 percent complete—far ahead of the five-year average of 21 percent with South Dakota having the progress at 72 percent. Grain sorghum condition averaged out one point higher nationally at 63 percent good to excellent. Texas and South Dakota improved by five and four points respectively, while Colorado declined 1 percent and Nebraska declined 5 points.
For topsoil conditions, Washington still maintains the top spot of worst-rated topsoil, with 100 percent of its acreage short to very short. Montana, North Dakota, and Oregon all have at least 90 percent of their topsoil in short-to-very-short moisture conditions.
Pasture and range conditions will be published Thursday with the Drought Monitor. — Charles Wallace, WLJ editor
