Thursday markets
“After a rallying first half of the week, the livestock contracts have taken a slower approach to Thursday’s market,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “With the lousy export report for beef, and steady to lower cash prices, it comes as no surprise that the live cattle market has fallen lower.”
Live cattle closed sharply lower, with the August contract down $1.47 to $135.40 and the October contract down $1.35 to $139.92.
Cash trade was moderate, with 9,497 head trading between $140-150, averaging $142.50. Dressed steers averaged $230.44. There was light trade developing in Nebraska and Colorado, at $140.
On the formula side, 22,000 head averaging 864 lbs. sold for $232.21.
Slaughter for the day is projected to be 123,000 head, 3,000 head below last week.
Actual slaughter for the week ending July 2 was 640,695 head. Steer weights averaged 883 lbs.
Boxed beef closed mixed on 110 loads, with the Choice cutout down 30 cents to $267.75 and the Select cutout up 65 cents to $241.91.
USDA’s Weekly Export report for the July 1-7 period showed net sales of 9,200 metric tons (mt) for 2022—a marketing year low—down 17 percent from the previous week and 35 percent from the prior four-week average. Increases primarily for Japan (3,800 mt), Mexico (2,900 mt), Canada (900 mt), China (500 mt) and Taiwan (400 mt) were offset by reductions for South Korea (700 mt). Exports were 17,100 mt, down 16 percent from the previous week and 13 percent from the prior four-week average.
Following yesterday’s release of the Consumer Price Index, which showed the inflation rate at 9.1 percent, the Daily Livestock Report wrote the food index was 10.4 percent higher than the previous year.
Beef prices in June were 4.1 percent higher than a year ago, the slowest year-over-year increase of all major proteins. Within the beef category, ground beef prices were up 9.7 percent compared to a year ago, while steak prices were down 0.3 percent. Pork prices were up 9 percent, and chicken was up 18.6 percent.
Feeder cattle
Feeder cattle closed lower after three days of gains, with the August contract down $1.90 to $178.90 and the September contract down $1.45 to $181.62. The CME Feeder Cattle Index was up $1.75 to $174.05.
“After an exhilarating rally earlier in the week, the feeder cattle contracts are trending lower as the market appears to be catching its breath from a technical run,” Stewart wrote. “Out in the countryside, feeder cattle demand is showing the honest nature of true price discovery as Western Video Market and Superior Livestock Auctions have hosted stellar sales this week.”
Corn closed mixed; the July contract expires today, closing down 45 cents to $6.95. The September and December contracts closed higher 5 cents a bushel to $6.05 and $6.01, respectively.
Nebraska: Bassett Livestock in Bassett sold 10,950 head Wednesday. Compared to the last auction, steers 400-950 lbs. traded steady to $7 higher, with steers 750-800 lbs. trading $13-16 higher. Heifer offerings 500-700 lbs. traded steady to $7 higher, and heifers 800-850 lbs. traded $12-13 higher. Benchmark steers averaging 771 lbs. sold between $194.50-220, averaging $206.47.
Oklahoma: OKC West in El Reno sold 11,119 head Wednesday. Compared to the previous auction, feeder steers traded steady to $3 higher. Feeder heifers sold $5-8 higher. There were not enough comparable trades of steer and heifer calves for a trend, but a firm undertone was noted. Benchmark steers averaging 776 lbs. sold between $166-176.50 and averaged $169.97.
South Dakota: Hub City Livestock in Aberdeen sold 1,715 head Wednesday. Compared to the previous auction, there were different weight classes, so an accurate price trend could not be established. Higher undertones were noted on both steers and heifers. Benchmark steers averaging 726 lbs. sold for $198. — Charles Wallace, WLJ editor
