Thursday markets
The cattle complex traded higher on news of a strong weekly export report and lower corn market.
Live cattle futures traded higher today, with the August contract up 75 cents to $120.80 and the October contract higher $1.42, closing at $126.67.
Cash trade was moderate, with 13,640 head selling between $120-125, averaging $122.36. Dressed steers sold between $194-200, averaging $195.86. On the formula side, 29,300 head averaging 860 lbs. sold for $197.35.
“Sales volumes are light this week and prices are soft,” the folks at The Cattle Report wrote. “The marketplace is trending more towards historically typical weeks when most trading is concluded at week’s end. Buyers are more reluctant to pay up for cattle early in the week and sellers are more resolved to hold on to higher asking prices with smaller show lists.”
The Fed Cattle Exchange had a special sale on Thursday with 2,295 head listed from Kansas and Texas. Of that, 304 head sold for $118.75 out of Texas. Opening prices for other lots were at $118, high bids ranged from $118-121.
Slaughter for today is expected to be 118,000 head, bringing the week’s total to 467,000 head—12,000 head below this time last week.
Boxed beef prices were higher today on 118 loads. The Choice cutout was up 90 cents to $266.14 and the Select cutout was higher $1 to $249.77.
The folks at The Cattle Report stated the rise in boxed beef prices could be attributed to lower slaughter numbers this week as processors continue their several-hundred-dollar-per-head margin.
In their Daily Livestock Report, the CME Group stated that grading percentages had shifted away from Prime in recent weeks.
“Seasonally, dressed weights have decreased and with those so has the percent grading Prime. June saw the first slip below 10 percent in 21 weeks,” the report read.
CME noted the decline in Prime-graded beef has resulted in a shift to Choice and Select. Choice-graded beef saw a brief decline in May from its high of 74.11 percent, while Select-graded beef has been growing since the beginning of the year.
USDA Weekly Export Sales showed net sales of 25,100 metric tons (mt) for the week ending July 15 were up noticeably from the previous week, and up 63 percent from the prior four-week average. Exports of 21,400 mt—a marketing-year high—were up 38 percent from the previous week and 22 percent from the prior four-week average. The destinations were primarily to South Korea (5,900 mt), Japan (5,500 mt), China (4,000 mt), Taiwan (1,500 mt), and Mexico (1,400 mt).
Feeder cattle
“The spot August contract is going to come up against some resistance at $160 and will soon have to decide how serious traders are about rallying this market higher and if the fundamental support is there to back to the movement,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Feeder cattle traded green from the opening, with the August contract up $1.42 to $158.20 and the September contract higher $1.40, closing at $160.70. The CME Feeder Index closed higher 49 cents to $151.39.
Corn traded lower due to a lower-than-expected weekly export sales report. The September contract was down 7 cents, closing at $5.64 and the December contract was also down 7 cents to $5.61 a bushel.
South Dakota: Hub City Livestock in Aberdeen sold 2,359 head on Wednesday. Compared to the previous auction, steers 850-950 lbs. sold $2-4 higher. The best test was on heifers 650-700 lbs. were steady to $2 lower and 900-950 lbs. sold mostly $1 higher. There was good to very good demand, which included several strings and many loads and packages. Benchmark steers averaging 776 lbs. sold between $154.50-155.
Nebraska: Bassett Livestock in Bassett sold 6,790 head on Wednesday. Compared to the last auction two weeks ago, steers 500-650 lbs. traded unevenly steady, 750-1,000-lb. steers traded steady to $6 lower. Comparable heifer offerings traded unevenly steady. Benchmark steers averaging 740 lbs. sold between $168.25-178.25, averaging $171.06.
Oklahoma: OKC West Livestock in El Reno sold 6,945 head on Wednesday. Compared to last week, feeder steers sold steady to $2 lower, except 900 lbs. and heavier were up to $5 higher. Feeder heifers traded steady. Benchmark steers averaging 775 lbs. sold between $150-157, averaging $153.03. — Charles Wallace, WLJ editor
