Friday markets
“This week began with optimism, smaller show lists, higher cash prices and rising box prices,” remarked the Cattle Report. “It ended with mostly negatives as the packers once again demonstrate they are not yet ready to turn the reins on cash transactions over to the cattle owners.”
Live cattle saw some more losses today. The August contract lost $1.27 to $122, and the October contract lost 47 cents to $129.12.
There was some cash fed trade today. A total of 4,552 head sold, with live steers averaging $124.50 and dressed steers averaging $205.85. On the formula side, a total of 14,800 head averaging 868 lbs. averaged $201.18.
Slaughter for the day is expected to reach 116,000 head, bringing the week’s total slaughter to 579,000 head. Saturday slaughter is projected to be 72,000 head, on account of slower processing speeds this week. Factoring in Saturday’s slaughter, the total weekly slaughter is expected to be 651,000 head, compared to last week’s 665,000 head.
“The weekly slaughter is failing to keep pace with last week, and daily slaughter numbers are being revised downward as labor and mechanical issues plague the processing industry,” the Cattle Report wrote.
“Processing margins are so large, any student of business will recognize their intent to maximize production.”
Boxed beef prices experienced some larger losses on 69 loads. The Choice cutout lost $1.93 to $345.34, and the Select cutout lost $4.07 to $315.52.
Feeder cattle
Feeders made some small gains today. The new September contract gained 20 cents to $164.65, and the October contract gained 15 cents to $168.42. The CME Feeder Cattle Index gained 60 cents to close at $159.39.
Corn futures also made small gains. The September contract increased 5 cents to $5.58, and the December contract gained 3 cents to $5.53.
“The overall tone of the complex remains extremely sluggish at the end of the week with traders seemingly trying to adjust positions following the active price pressure earlier in the week,” remarked Rick Kment, DTN contributing analyst.
South Dakota: Mitchell Livestock Auction in Mitchell sold 4,124 head yesterday. Compared to two weeks ago, a lower undertone was noted on steers up to 800 lbs. Steers 800 lbs. and up were steady to $3 higher. Heifers 700 lbs. and up were steady to $4 higher. Benchmark steers averaging 789 lbs. sold between $152-157.50. — Anna Miller, WLJ managing editor
