Friday markets
All of us at Western Livestock Journal wish you and your family a happy and safe 4th of July. Trading volume was light in anticipation of the holiday weekend, with feeder cattle boosted by a weaker corn market.
Live cattle complex traded lower, with the August contract down $1.57 to $122 and the October contract lower $1.17 to $128.07.
Cash trade was moderate, with 4,424 head selling between $124.50-126 averaging $125.38. Dressed steers traded between $197-203, averaging $202.38. Friday negotiated cash trading has been limited on light demand in Nebraska and the western Corn Belt, with not enough purchases in either region for a full market trend. Negotiated cash trading in the Southern Plains has been at a standstill. On the formula side, 23,100 head averaging 854 lbs. sold for $200.98.
“Thus far, there’s yet to be any more cash cattle trade develop as packers are checked out for the weekend and looking at three dark days ahead of them,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “It’s looking like the majority of this week’s trade is essentially done.”
Slaughter for today is expected to be 113,000 head and Saturday’s slaughter is expected to be 33,000 head, bringing the weekly slaughter 623,000—42,000 head above last year.
Boxed beef prices continued their decline, with the Choice/Select spread narrowing to $21.03 on 103 loads. The Choice cutout was down $2.21 to $285.44 and the Select cutout was lower $2.52 to $264.41.
According to the CME Group Livestock Daily Report, preliminary statistics from USDA-AMS, imports of fresh and frozen beef (excludes cooked) in the first six months of the year were 8.1 percent lower than the same period a year ago. Imports from North American countries (Mexico, Canada ) were about the same as last year. Imports from Mexico were down 14,796 metric tons (mt) during this period or 10.5 percent, which offset the 14,537 mt increase in imports from Canada. On the other hand, imports from other countries were down 45,806 mt or 16.4 percent compared to a year ago.
“It is true that US beef imports from Brazil are up, but that’s because we are comparing to a very low base from a year ago,” the CME report stated. “In the first six months of last year, imports of fresh/frozen beef from Brazil were just 674 mt, almost nothing. This year, imports, as recorded by USDA, have been 13,511 mt.
Feeder cattle
Feeder cattle traded slightly higher, buoyed by weaker corn futures. The August contract was up 72 cents to $157.05 and September was higher 35 cents to $159.42. The CME Feeder Cattle Index was down $1.14 to $145.96.
Corn traded lower after a D.C. Circuit Court of Appeals reversed a 2019 EPA ruling that removed the restrictions on year-round E15 sales. The July contract traded down 22 cents a bushel to $6.97 and the September contract was down 9 cents to $5.92 a bushel.
“The feeder cattle contracts are trying to rally but without the market being able to attract a large volume of interested traders, the rally is modest at best,” Stewart wrote. “If the corn market continues to bow lower early next week, the market stands a good chance at a rally into next week’s trade as later in the week feeder cattle sales will resume and buyers will likely be aggressive as the market took a lengthy, midyear break.”
Kansas: Winter Livestock in Pratt sold 1,099 head on Thursday. Compared to the previous auction, feeder steers 675-1,000 lbs. sold $8-12. higher. Outstanding quality on the feeder steers. Feeder heifers 650-850 lbs. sold $5-6 higher on light receipts. Benchmark steers averaging 831 lbs. sold between $143-149.85.
Texas: Cattlemen’s Livestock in Dalhart sold 1,411 head on Friday. Compared to the previous week, steer and heifer calves under 600 lbs. were firm to $2 higher in a limited test; feeder steers and heifers over 600 lbs. were firm to $2 higher. Benchmark steers averaging 661 lbs. sold at $162.
Just a reminder that markets and our office will be closed on Monday, July 5. — Charles Wallace, WLJ editor
