Tuesday markets
After healthy gains in the cattle complex on Monday, today it’s a turnaround Tuesday as the market is giving back some of the gains, while boxed beef prices are climbing.
Live cattle futures traded lower, with the August contract down 52 cents to $122.92 and the October contract down 77 cents, closing at $128.42.
Cash trade was moderate, with 2,138 head selling between $121-125, averaging $124.06. Dressed steers sold between $195-200, averaging $199.02. On the formula side, 24,400 head averaging 863 lbs. sold for $195.34.
“With Labor Day buying spurring boxes higher, packers are again seeing their end margin increase and consequently have more to give for cash cattle,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “The tough component of the market will be whether feedlots stick together in marketing this week and demand higher prices.”
Boxed beef prices were higher again today on 157 loads. The Choice cutout was up $1.80 to $269.73 and the Select cutout was higher $3.02 to $253.94.
Slaughter for today is expected to be 119,000 head, 2,000 head above last week.
“The surprise this past week was a large Saturday slaughter number making the weekly slaughter 648,000 after a revision, down only slightly instead of 10-15,000 head lower as many expected,” The Cattle Report wrote. “Packers are maintaining several hundred dollar per head margins on current cattle processing assuring a continuing effort to keep the beef plants humming. At the current slaughter level, processors are eating through front-end supplies.”
Feeder cattle
Feeder cattle were also lower despite corn trading relatively unchanged. The August contract was down $1.50 to $160.70 and the September contract was lower 82 cents, closing at $164. The CME Feeder Cattle Index was higher $1.94 to $153.97.
“Feeder cattle futures haven’t been lackadaisical in their trade over the last month as the corn market has given the complex an opportunity to rally and calf buyers have hit the early summer sales with immense aggression,” Stewart wrote. “But now that the spot August contract has come up against resistance at $162, the market sits and ponders how much true upside there is.”
Corn traded slightly lower, with the September contract down a penny at $5.48 and December down a fraction of a cent, closing at $5.46 a bushel.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 3,625 head on Monday. Compared to the previous auction, feeder steers sold $5-9 higher, except 900-950 lbs. were $1-2 lower. Heifers sold $8-12 higher, except 950-1,000 lbs. were $4-5 lower. Benchmark steers averaging 773 lbs. sold between $152-162.50, averaging $157.30.
New Mexico: Roswell Livestock in Roswell sold 1,035 head on Monday. Compared to the week prior, feeder steers, heifers and calves sold $4-8 higher. A small group of steers averaging 570 lbs. sold for $184.
Crop Progress
This week’s USDA Crop Progress report saw a 1 percent decline in the good-to-excellent rating of corn nationwide to 64 percent. Despite increases in the condition in the eastern Corn Belt, declines in the good-to-excellent condition were experienced in Iowa, Kansas fell 5 points and North Dakota declined 8 points. Corn silking was reported at 79 percent, up from 56 percent last week and 6 percentage points ahead of the five-year average of 52 percent.
The heatwave has continued to deteriorate topsoil conditions in the Northwest, with Montana having the highest very-short rating at 75 percent, followed by Washington (69 percent), Oregon (65 percent) and Idaho (44 percent).
Pasture and range conditions will be posted in the Drought Monitor on Thursday. — Charles Wallace, WLJ editor
