Tuesday markets
The market sailed higher today, boosted by lower corn prices and the latest World Agricultural Supply and Demand Estimates (WASDE) report.
Live cattle futures were slightly higher, with the August contract up 52 cents to $136.67 and the October contract up 85 cents to $141.27.
“Tuesday’s WASDE report was very supportive of the live cattle market for both the immediate time being and the 2023 market,” said ShayLe Stewart, DTN livestock analyst, in her midday comments. “Beef production is raised for the second half with lower expected carcass weights and lower third quarter slaughter is more than offset by higher fourth-quarter slaughter.”
There was a smaller amount of cash trade, with about 1,600 head sold. Live steers averaged about $145, and dressed steers averaged $230. On the formula side, a total of 31,500 head averaged 852 lbs. and sold for an average of $231.38.
“The cash cattle market hasn’t really seen any trade develop and it’s looking like business could wait until Wednesday or later to really develop,” Stewart said. “A bid of $145 is being offered in Nebraska, but otherwise the market is sitting idle, waiting for more aggressive money to be offered.”
The national weekly direct beef type price distribution for the week of July 4-11 was the following on a live basis:
• Negotiated purchases: $144.18.
• Formula net purchases: $146.11.
• Forward contract net purchases: $154.68.
• Negotiated grid net purchases: $141.93.
On a dressed basis:
• Negotiated purchases: $232.54.
• Formula net purchases: $230.35.
• Forward contract net purchases: $221.
• Negotiated grid net purchases: $232.97.
Slaughter for the day is estimated at 126,000 head, compared to last week’s number of 119,000 head.
Boxed beef prices were mixed on 178 loads. The Choice cutout gained 37 cents to close at $268.51, and the Select cutout lost 83 cents to close at $242.17.
Feeder cattle
“As the corn market dives lower thanks to worrisome concerns about weather and long-term fears about grain demand as COVID cases increase in China, the grain market’s weakness comes at a perfect (time) for the feeder cattle market as it was waiting patiently for its time to shine and for its opportunity to trade higher,” Stewart said.
Feeder cattle futures had a heyday today, up over $4 on near contracts. The August contract gained $4.70 to close at $179.57, and the September contract gained $4.12 to close at $181.52.
The CME Feeder Cattle Index lost 87 cents to close at $171.34.
Corn futures sank lower, with the July contract down 48 cents to $7.32 and the September contract down 43 cents to close at $5.94.
Iowa: Russell Livestock in Russell sold 1,163 head on Monday. There was no recent sale for a comparison. Demand was strong, and there was active trade. Benchmark steers averaging 782 lbs. sold between $146-158 and averaged $152.12.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,032 head on Monday. Compared to two weeks earlier, feeder steers under 700 lbs. sold with higher undertones, 700-750 lbs. sold steady to $1 lower and over 750 lbs. sold steady to $5 higher. Feeder heifers sold steady to $3 higher, and 850-900 lbs. sold $6-8 higher. Benchmark steers averaging 780 lbs. sold between $179-184 and averaged $182.02. — Anna Miller, WLJ managing editor
