Friday markets
The market was higher today with the release of USDA’s reports for cattle on feed and the cattle inventory.
Live cattle futures were higher, with the August contract up $1.65 to $137.37 and the October contract up $2.02 to $143.
Cash trade for the morning totaled about 4,600 head, bringing the week’s trade as of the morning to about 62,400 head. Earlier today, live steers sold between $136-145, and dressed steers sold from $227-230.
On the formula side, a total of 32,800 head averaging 860 lbs. sold for an average of $224.64.
Slaughter for the day is estimated at 119,000 head, bringing the week’s total so far to about 616,000 head. With tomorrow’s slaughter expected at 49,000 head, total slaughter for the week should be about 665,000 head. A week earlier, slaughter totaled about 674,000 head.
Boxed beef prices were mixed on 95 loads, with the Choice cutout down 64 cents to $267.12 and the Select cutout up $1.97 to $242.50.
“This past week’s slaughter at 674,000 head, 24,000 over prior year, was a large number yet the cutout managed to post gains for the week,” the Ag Center wrote in the Cattle Report. “Retailers are purchasing for mid-summer needs and export partners are playing catch up. Those following the box inventories were surprised at this past week’s strength.”
The July Cattle on Feed report noted cattle and calves on feed totaled 11.3 million head on July 1. Steers and steer calves were down 1 percent from 2021, while heifers and heifer calves were up 3 percent.
Placements in June totaled 1.63 million head, 2 percent lower than last July. Net placements were 1.56 million head. Marketings of fed cattle totaled 2.06 million head, 2 percent above 2021. Other disappearance totaled 69,000 head during June, 21 percent above 2021.
The midyear Cattle Inventory report totaled cattle and calves in the U.S. at 98.8 million head, 2 percent below last year. All cows and heifers that calved totaled 39.8 million head, 2 percent below 2021. Beef cows were down 2 percent, and beef replacement heifers were down 3 percent.
Steers 500 lbs. and over totaled 14.4 million head, down 1 percent from last July. Bulls 500 lbs. and over totaled 2 million head, unchanged from last year. Calves under 500 lbs. totaled 27 million head, down 3 percent from last summer.
Cattle and calves on feed for slaughter totaled 13.4 million head, unchanged from last year. The 2022 calf crop is expected to be 34.6 million head, down 1 percent from 2021.
Feeder cattle
“This summer will start a period of smaller placements that will not be likely to change for several years as smaller supplies of replacement cattle feed into the mix,” the Ag Center wrote. “Excess pen capacity will force feedlot buyers to overpay for feeder cattle and eventually force less efficient cattle feeders to close down some feeding facilities.”
The August contract was up $3.27 to $181.55, and the September contract was up $3.17 to $184.47.
The CME Feeder Cattle Index gained 34 cents to close at $171.01.
Corn prices were down, with the September contract down 11 cents to $5.64 and the December contract down 9 cents to $5.64.
Kansas: Winter Livestock in Pratt sold 2,999 head on Thursday. Compared to last week, feeder steers 500-950 lbs. sold $4-9 lower. Feeder heifers 500-1,000 lbs. sold $3-6 higher. Benchmark steers averaging 727 lbs. sold between $159-162 and averaged $160.17. — Anna Miller, WLJ managing editor
