Thursday markets
Fed cattle markets were stronger this week. Cattle feeders are starting to dig their heels in and move the market higher. The August live cattle contract was up 32 cents to $102.62 and October was down 47 cents to $106.97.
Negotiated cash markets were slow early in the week and by today’s afternoon report, only 45,387 head had traded. Live prices ranged between $99-103 with a weighted average of $100.32. Dressed trade was between $160.50-165 and had a weighted average of $162.88.
Estimated slaughter through this afternoon was 464,000 head and the same week last year the actual slaughter was 483,000 head. Packers are struggling to keep the Choice cutout over $200 by slowing production and protecting their margins, which have been around $250 per head. The Choice cutout finished Thursday $1.09 higher to $204.66 and Select gained $1.19 to $192.01 on 143 loads.
ShayLe Stewart, DTN livestock analyst, reported, “Live cattle contracts flirted with the notion of trading lower, but as Wednesday progressed, and the rest of the livestock complex started to trade with some modest support, the live cattle contracts did, as well. Cash cattle trade got under way in Texas Wednesday afternoon, selling live cattle for $99-100, $2.50-3.50 higher than last week’s average.
“Northern feedlots are playing tough as their asking prices remain firm, and thus far they show no intention of caving into lower money. If packers keep with their near 100,000 head a week buying pattern, they’ll have to get serious about buying in the later part of the week.”
Cassie Fish, market analyst in The Beef, is getting concerned about the estimated slaughter numbers. “It’s been a pattern since the social distancing protocols were instituted at beef packing plants. The weekly USDA estimated slaughter is ultimately revised down when it’s reported two weeks later. The revisions have been significant, 4k to 14k over several weeks and the amount of the adjustments has been unprecedented prior to 2020.
“The week ended July 25 slaughter totaled 640,000 head rather than the 646,000 head estimated. The fed kill was 518,000 head compared to 526,000 for the same week in 2020.”
At St. Joseph Stockyards in St. Joseph, MO, compared to one week ago, steers weighing 400- 500 lbs. sold $3-5 stronger, steers weighing 500- 600 lbs. sold steady to $2 lower, steers weighing 600-700 lbs. sold steady to $3 higher and the heavier steers weighing 800 lbs. or more really rang the bell, selling $5-6 higher. Heifers sold $3-5 higher throughout all weight groups. Demand was moderate to good and most of the cattle were fresh off green grass.
Bassett Livestock Auction in Bassett, NE, offered 5,210 head Wednesday and reported compared with one week ago, 500-950-lb. steers traded steady to $10 higher and 1,000-lb. steers traded $2 lower, heifer offerings 500-650 lbs. traded steady to $5 lower. Demand was good with several buyers and high internet bidding. Benchmark steers weighing 761 lbs. averaged $152.81. — Pete Crow, WLJ publisher
