Tuesday markets
Despite a Cold Storage report showing a tightening of inventory, live cattle futures closed the day down slightly from Monday’s gains and feeder cattle were mixed.
USDA’s National Agricultural Statistics Service released the monthly Cold Storage report showing July beef in freezers was down slightly from the previous month and down 9 percent from last year. The report showed July beef stocks totaled 401.26 million lbs., a drop of 256,000 lbs. from June’s number, the tightest inventory for any month since November 2014.
Live cattle futures were rallying during the trading day, but closed lower. The August contract was down 65 cents to $125.80 and the October contract was lower 25 cents to $131.70.
Cash trade was light, with 2,068 head sold at $130. Dressed steers sold between $206-208, averaging $207.25. On the formula side, 21,500 head averaging 878 lbs. sold for $196.92.
“The only reported sales were live sales at $129.75 in Nebraska,” The Cattle Report wrote. “Rumors of $130 paid over the weekend in the north were not confirmed but asking prices were at $130 or higher in the north. Smaller show lists in Texas gave cattle owners confidence in their higher asking prices. Weekly slaughter volumes will test the ability of the processors to deliver beef into the robust demand side of retail and export sales.”
Slaughter for the day is expected to be 120,000 head, a thousand head below last week.
Boxed beef prices were lower on 106 loads. The Choice cutout was down 45 cents to $347.58 and the Select cutout was down $2.50 to $316.90.
One of USDA’s newest reports, the National Weekly Direct Beef Type Price Distribution report, was released for the week ending Aug. 23. The report showed the average live basis distribution as:
• Negotiated purchases: $125.61;
• Formula net purchases: $125.11;
• Formula contract net purchases: $126.53; and
• Negotiated grid net purchases: $124.24.
For dressed purchases:
• Negotiated purchases: $200.83;
• Formula net purchases: $198.70;
• Formula contract net purchases: $192.09; and
• Negotiated grid net purchases: $198.67.
Feeder cattle
Feeder cattle closed the day mixed with the August contract closing higher 37 cents to $158.57 and the September contract down $1.52 to $165.77. The CME Feeder Index was down 6 cents to $155.73.
Corn futures closed higher, with the September contract up 6 cents to $5.39 and the December contract up 9 cents to $5.45 a bushel.
New Mexico: Roswell Livestock in Roswell sold 738 head on Monday. Compared to the previous auction, there was no accurate comparison on steer and heifer calves and feeders due to limited comparable quotes. Still, a higher undertone was noted on larger loads of good quality offerings in the 500-650-lb. range. A small group of steers averaging 527 lbs. sold between $190-191.
Crop Progress
USDA’s Crop Progress report showed a 2 percent drop in the good-to-excellent rating for corn for the second week. Nationwide, 60 percent of the crop is rated good-to-excellent, now tied for the third-lowest good-to-excellent rating in the past 12 years, said DTN Lead Analyst Todd Hultman.
Kansas dropped 2 percent in the good-to-excellent rating to 60 percent. Nebraska dropped 1 percent to 67 percent and Iowa remained unchanged with 58 percent.
Corn dented was estimated at 41 percent, slightly ahead of the five-year average of 38 percent, while the percent of the crop reaching maturity was equal to the five-year average of 4 percent.
Meanwhile, spring wheat harvest is well ahead of schedule, climbing 19 percentage points to 77 percent complete as of Sunday—a 22-percentage-point lead over the five-year average of 55 percent. — Charles Wallace, WLJ editor
