Friday markets
USDA released its latest Cattle on Feed report today, which was considered relatively neutral to bullish. In response, markets climbed higher.
Live cattle futures were in the green. The August contract gained 87 cents to $124.27, and the October contract gained 90 cents to $129.05.
Some cash trade took place today, with 2,327 head sold. Live steers sold between $122-127, averaging $122.62. Dressed steers sold between $204-205, averaging $204.65. On the formula side, a total of 31,800 head averaging 872 lbs. averaged $197.10.
Slaughter for the day is projected at 116,000 head—the same as last Friday. Slaughter through the week so far is estimated at 595,000 head, about 17,000 head higher than last week. Saturday’s slaughter is expected to reach 70,000 head, hopefully bringing the total slaughter to 665,000 head.
Boxed beef prices continue to go up, up, up. On 85 loads, the Choice cutout increased $3.43 to $345.06, and the Select cutout increased $2.12 to $318.53.
“Firm gains have continued to steadily develop in boxed beef values, although cash and futures prices are showing no sign of jumping onto the bandwagon,” commented Rick Kment, DTN contribution analyst, in his midday comments.
“The concern that beef values will not be able to hold recent gains, as Labor Day buying ends, is still creating market apathy.”
USDA’s Cattle on Feed report denoted a strong continued decline in placements. Total cattle and calves on feed was down 2 percent from last August’s levels. Placements were down a striking 8 percent, and marketings were down 5 percent. Other disappearance totaled 55,000 head, 4 percent below 2020.
“The decline in placements, at 92 percent of last year, exceeded prerelease guesses and will create more evidence of an undersupply of fed cattle later this year,” the Cattle Report wrote. “August may see placement numbers moving higher, but the trend line for fed supplies is irreversible, and each day moves shortages of cattle rather than beef as the driver in pricing.”
Feeder cattle
Feeders made gains today, recovering yesterday’s losses and then some. The August contract gained 75 cents to $159.02, and the September contract gained $2.60, closing at $165.50.
The CME Feeder Cattle Index increased 37 cents to $155.79.
Corn futures saw some losses. The September contract lost 11 cents to $5.38, and the December contract lost 13 cents to $5.37.
“Although Thursday’s corn market losses did very little to support feeder cattle prices, the market slide over the past two days is creating significant shifts in production costs, if feeders are able to take advantage of forward pricing,” Kment wrote.
Oklahoma: Woodward Livestock Auction in Woodward sold 3,433 head Thursday. Compared to last week, feeder steers and heifers sold mostly steady. Steer and heifer calves sold steady. Benchmark steers averaging 774 lbs. sold between $146-161.25, averaging $155.50. — Anna Miller, WLJ managing editor
