Thursday markets
Markets lost their momentum shown earlier this week, spurred lower by higher corn and losses in the hog markets.
“Despite a strong attempt for traders to hang onto previous gains, the mounting pressure of higher grain trade and aggressive limit losses in hog markets quickly eroded the resolve of live cattle traders, at least for the remainder of 2021 contract months,” remarked Rick Kment, DTN contributing analyst, in his closing comments.
Live cattle futures were unable to find any momentum today, losing about a dollar and a half on each contract. The August contract lost $1.47 to $122.57 and the October contract lost $1.40 to $127.57.
Some cash trade took place today. A total of 9,686 head sold, with live steers selling between $121-126 and dressed steers selling between $196-199. On the formula side, a total of 31,000 head averaging 865 lbs. averaged $197.19.
Slaughter through the day is expected to total 121,000 head, bringing the week’s total to 480,000 head. This is about 3,000 head more head than the same time last week. USDA released actual slaughter for the week ending July 24, which totaled 655,063 head.
Boxed beef prices were higher, with the Choice cutout up $3.24 to $292.58 and the Select cutout up $2.62 to $273.77.
Feeder cattle
Feeders found themselves in a slump today, losing over $1. The August contract lost $1.55 to $157.65 and the September contract lost $1.72 to $161.15. The CME Feeder Cattle Index lost 17 cents to $155.80.
“Feeder cattle futures fell victim to renewed buyer support in grain trade Thursday,” Kment said. “Any expectations that weakness in corn and soybean markets earlier in the week would continue to help reduce overall feed costs were quickly dashed Thursday morning when active gains moved into nearby and deferred corn markets.”
Corn found some gains today, increasing 10 cents on the September contract to $5.55 and 6 cents on the December contract to $5.53.
Oklahoma: OKC West in El Reno sold 7,006 head Wednesday. Compared to the previous week, feeder steers sold steady to $1 higher and feeder heifers traded steady to $2 higher. Benchmark steers averaging 787 lbs. sold between $153.50-159, averaging $154.49. — Anna Miller, WLJ managing editor
