Tuesday markets
Seasonally high boxed beef prices and lower corn contracts have led to a higher cattle complex. The USDA Crop Progress report shows a 2 percent decline in the good-to-excellent rating of corn.
Live cattle contracts were higher, with the August contract up $1.22 to $123.35 and the October contract higher 90 cents, closing at $128.17.
“As the market comes up against resistance, the rubber is going to have to meet the road to move the complex above longer-term resistance,” ShayLe Stewart, DTN livestock analyst, said in her midday comments. “Thankfully with boxed beef prices showing no immediate signs of retracting, the market sits in a fine position to rally, as the cash cattle market is the only side of the market that’s been lacking.”
Today’s cash cattle trade was moderate, with 4,809 head selling between $123-125, averaging $124.57. Dressed steers sold for $197. Negotiated cash trading has been limited with light demand in Nebraska and the Western Corn Belt; a few live purchases traded at $125. On the formula side, 26,500 head averaging 863 lbs. sold for $195.95.
Slaughter for the day is expected to be 122,000 head, 3,000 head above last week.
Boxed beef prices rose again today on 130 loads, with the Choice cutout higher $4.84 to $285.84 and the Select cutout higher $4.11 to $267.49.
“The last time cutout values were this high was early July as the market came off its June highs,” remarked Cassie Fish, market analyst for The Beef. “An early August rally in beef prices is very seasonal but this one has a lot of power, thanks in part to continued aggressive demand for fat trim, both beef and pork.”
Feeder cattle
Feeder cattle moved higher on a lower corn market. August feeder cattle were up 65 cents to $158.90 and the September contract was higher 55 cents, closing at $162.52. The CME Feeder Cattle Index was up $1.54 to $155.58.
The grain complex was lower today, with September corn down 8 cents a bushel to $5.50 and the December contract lower 7 cents to $5.51 a bushel.
New Mexico: Roswell Livestock in Roswell sold 587 head on Monday. Compared to the previous auction, steer and heifer calves and feeders sold mostly steady on limited comparable quotes. A small group of steers averaging 548 lbs. sold between $169-171, averaging $170.
Crop Progress
Due to dry weather last week, USDA lowered the good-to-excellent rating for corn from 64 percent to 62 percent this week. Nebraska’s good-to-excellent rating dropped by 5 percent to 71 percent, Kansas dropped 4 percent to 65 percent and Iowa was lower by 3 percent to 62 percent. Currently, 91 percent of corn is silking, a 12 percent jump from last week and above the 5-year average of 86 percent.
In a bit of a surprise and contrast to the corn, the soybean rating improved by two percentage points to 60 percent good-to-excellent. Sorghum rating dropped 4 percent from last week to 62 percent good-to-excellent. Surprisingly, spring wheat had a 1 percent increase in the good-to-excellent rating, but it still languishes with only 10 percent rated good-to-excellent. However, 17 percent of the crop is harvested, with South Dakota over half completed at 53 percent and Washington at 40 percent.
Washington continues to be the state with the worst-rated topsoil moisture condition, with now 100 percent rated as short to very short. Montana is in much the same condition at 98 percent short to very short.
A complete listing of pasture and range conditions will be published in the Drought Monitor on Thursday. — Charles Wallace, WLJ editor
