Friday markets
Commodities finished the week in the red, with both cattle and corn futures trading lower, while the cash cattle market did not provide any support.
Live cattle were down, with the August contract down 95 cents to $120.17 and October lower 92 cents, closing at $125.60.
Cash trade was light today, with a total of 3,932 head selling between $121-126, averaging $122.91. Dressed steers sold at $196. Negotiated cash trade in Nebraska and the western Corn Belt was mostly inactive on light demand. In Nebraska, Wednesday was the last live purchase market at $123 and in the western Corn Belt, Wednesday was the last live purchase market from $125-125.50. On the formula side, 28,000 head averaging 862 lbs. sold for $195.07.
Slaughter for today is expected to be 118,000 and Saturday’s slaughter is projected to be 56,000, bringing the weekly total to 653,000 head— seven thousand above the actual weekly total last year.
The CME Group Daily Livestock Newsletter has been tracking weekly slaughter data from USDA National Agricultural Statistics Service Information (NASS) for the second quarter and reported total beef cow slaughter for weeks 14-26 (Q2) was 891,300 head this year.
This is 127,200 head, or 17 percent higher than a year ago and 96,300 head or 12 percent
higher than in 2019.
The biggest increase in beef cow slaughter during the second quarter came from region 6 (New Mexico, Texas, Oklahoma, Arkansas, Louisiana). During the same period in question, beef cow slaughter in this region was up 46,300 head or 26 percent compared to 2019 with the biggest increase in Texas.
The effect of drought in California, Nevada and Arizona caused a sharp rise in beef cow slaughter in region 9. During the reference period, beef cow slaughter in the region was 61,200 head, 21,000 head, or 52 percent higher than the same period in 2019.
Boxed beef prices were also lower on 143 loads. The Choice cutout was down $1.93 to $267.94 and the Select cutout was down 69 cents, closing at $251.79. The Choice/Select spread is $16.15.
Feeder cattle
“The fact that the live cattle complex is fighting to keep some of its contracts trending higher could be a token of support that the feeder cattle contracts try to grasp,” remarked ShayLe Stewart, DTN livestock analyst, in the midday comments. “But with traders unwilling to do much of anything, the contracts are left to drift lower.”
Despite corn trading lower, feeder cattle could not find any support, with August down $1.75 to $155.62 and September down 72 cents, closing at $158.50. The CME Feeder Cattle Index was lower 48 cents to $152.35.
The September corn contract was down 8 cents to $5.56 and December was lower 4 cents a bushel to $5.52.
Kansas: Pratt Livestock in Pratt sold 2,378 head on Thursday. Compared to the previous auction, feeder steers 800-1,000 lbs. sold $2-5 lower. Steers 500-800 lbs. sold $8-10 higher. Feeder heifers 775-975 lbs. sold $6-8 higher. Heifers 675-775 lbs. sold steady. Benchmark steers averaging 771 lbs. sold for $159.25.
Texas: Cattlemen’s Livestock in Dalhart sold 1,885 head on Thursday. Compared to last week, there was no market comparison due to the closure for the holiday last week however, a firm undertone was noted on all classes of livestock on offer. Trade was active on good demand. Benchmark steers weighing 789 lbs. sold for $155.25.
South Dakota: Mitchell Livestock in Mitchell sold 2,635 head on Thursday. Compared to the previous auction, a higher undertone was noted on steers up to 850 lbs.; steers 850-900 lbs. sold steady; steers 1,100-1,150 lbs. sold $1 lower. A higher undertone was noted on heifers up to 800 lbs.; heifers 800-950 lbs. sold steady to $1 higher. Benchmark steers averaging 778 lbs. sold for $164.75. — Charles Wallace, WLJ editor
