Wednesday markets
Analysts have released pre-report estimates of this Friday’s Cattle on Feed report and semiannual Cattle Inventory report, showing June placements at 94.7 percent and the inventory of cattle and calves down 2.1 percent. Cattle futures closed mixed, while cash trade today was $1-3 lower in Nebraska.
The July Cattle on Feed pre-report estimates show that analysts expect the July 1 cattle on feed number to be marginally above a year ago at 100.1 percent, according to the Daily Livestock Report. Analysts expect June cattle placements to be 94.7 percent of a year ago, down to 1.581 million head, which would be the lowest for the month of June since 2016. Cattle marketings are expected to be higher in June, at 102 percent, or 2.062 million head, the highest for June in over a decade.
Analysts also released their pre-report estimates for the July 1 Cattle Inventory report, showing all cattle and calves on July 1 are expected to be down 2.1 percent to 98.683 million head. Cows and heifers that have calved are estimated to be 2.6 percent lower to 39.739 million head.
Live cattle closed virtually unchanged, with the August contract up 2 cents to $135.75 and the October contract up 22 cents to $141.32.
“With feedlots waiting this week out in hopes of higher prices, the futures market is supporting higher tones and could help feedlots muster at least steady prices,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade developed today, with 22,666 head selling between $139-143, averaging $141.06. Dressed steers averaged $227.04.
Some scattered trade is being reported in parts of Nebraska at midday, with dressed deals at mostly $227, $3 lower, and live deals at $142, $1-3 lower than last week. Bids of $142 live and $225 dressed were being offered in Iowa.
On the formula side, 20,400 head averaging 852 lbs. sold for $233.07.
Slaughter for the day is projected to be 124,000 head, 2,000 below last week.
Boxed beef closed lower on 119 loads. The Choice cutout was down $2.04 to $270.53, and the Select cutout was down $1.48 to $242.25.
Feeder cattle
Feeder cattle closed lower, with the August contract down 92 cents to $177.82 and the September contract down 82 cents to $180.97. The CME Feeder Cattle Index was down 8 cents to $172.42.
“Demand is still incredible for both calves and feeders and the corn market hasn’t jolted higher, so it’s likely that traders are letting the market breathe today and could take it higher later in the week if fundamental demand holds,” Stewart wrote.
Corn was lower on concerns over the heat and pollination, with the September contract down 4 cents to $5.92 and the December contract down 5 cents to $5.90.
Texas: Lonestar Stockyards in Wildorado sold 796 head Tuesday. Compared to the previous auction, feeder steers and heifers traded mostly steady to $2 higher on comparable sales. A group of steers averaging 657 lbs. sold for $176.50. — Charles Wallace, WLJ editor
