Friday markets
Cattle markets were able to recover some of yesterday’s losses and were able to move higher today. However, slaughter is down from necessary levels, and boxed beef prices continue to increase in value.
Live cattle futures saw some slight gains today. The August contract increased 42 cents to $123 and the October contract increased 30 cents to $127.87.
“The focus on gains in early 2022 contracts is fueled by the renewed support in feeder cattle buying Friday as traders are taking a longer view of the market, partially due to the lack of activity and market interest,” remarked Rick Kment, DTN contributing analyst, in his midday comments.
Cash trade through the day totaled 6,080 head. Live steers sold between $120-126, averaging $125, and dressed steers sold between $197-198, averaging $197.59. On the formula side, a total of 24,400 head averaging 869 lbs. averaged $193.45.
Slaughter for the day is estimated at 113,000 head, bringing the week’s total to 593,000 head, a couple thousand head more than the same time last week. Tomorrow’s slaughter is expected to be 48,000 head, bringing the entire week’s total to 641,000 head.
Boxed beef prices are not slowing down. On 93 loads, the Choice cutout increased $3.68 to $296.26 and the Select cutout increased $3.32 to $277.09.
Feeder cattle
Feeders saw the light and finished stronger today, $2 higher on the nearby contracts. The August contract gained $2.20 to $159.85 and the September contract gained $2.17 to $163.32. The CME Feeder Cattle Index gained 75 cents to close at $156.55.
Corn prices were mixed, with the September contract down 6 cents to $5.55 and the December contract up 3 cents to $5.56.
“Despite strong continued gains in corn prices, trades seem to be less spooked about the current feed costs at the end of the week and more focused on long-term feeder cattle supply issues as available market-ready feeder cattle are expected to remain in high demand through the end of the summer and fall,” Kment said.
Kansas: Winter Livestock in Pratt sold 5,658 head Thursday. Compared to the previous sale, feeder steers 800-950 lbs. sold $1-3 higher; steers 700-800 lbs. sold $3-4 lower. Feeder heifers 675-825 lbs. sold $2-5 higher; heifers 825-925 lbs. sold $3-5 lower. — Anna Miller, WLJ managing editor
