Thursday markets
Despite a favorable export report, it was a lackluster day for cattle futures. Cattle futures closed lower as corn continued its rally.
Live cattle closed lower, with the August contract down 62 cents to $136.17 and the October contract down 50 cents to $141.82.
Cash trade was moderate and appeared to be done for the week, with 7,888 head selling between $135-144 and averaging $140.62. Dressed steers sold between $223-227, averaging $224.44.
On the formula side, 24,800 head averaging 848 lbs. sold for $226.43.
“Until the cash cattle market can possess more of the market’s leverage when supplies become thin, the market could continue to see this type of doggish attitude,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “The countryside hasn’t seen any renewed support and it’s looking like packers aren’t going to buy very many cattle again this week. With their ability to avoid buying cattle through the cash market with formula deals and alternative marketing agreements, it’s hard for the cash cattle market to gain any momentum when supplies are plentiful.”
Slaughter for today is projected to be 121,000 head, 3,000 below last week.
Actual slaughter for the week ending July 16 was 672,680 head. Steer dressed weights were 889 lbs.
Boxed beef closed lower on 99 loads, with the Choice cutout down 22 cents to $267.77 and the Select cutout lower $1 to $240.81.
USDA’s Weekly Export report for the July 15-21 period showed net sales of 25,300 metric tons (mt), up 6 percent from the previous week and 66 percent from the prior four-week average. Increases were primarily for South Korea (7,900 mt), Japan (7,000 mt), China (3,100 mt), Taiwan (2,500 mt) and Mexico (1,100 mt). Exports were 20,300 mt, up 3 percent from the previous week and 5 percent from the prior four-week average.
Feeder cattle
Feeder cattle closed lower as corn continues its rally through the week. The August contract was down $1.67 to $177.42, and the September contract was down $1.65 to $180.20. The CME Feeder Cattle Index was up $1.91 to $172.55.
Corn closed double digits higher, with the September contract up 14 cents to $6.15 and the December contract up 16 cents to $6.19.
Nebraska: Bassett Livestock in Bassett sold 8,230 head Wednesday. Compared to the previous auction two weeks ago, steers 550 and 1,050 lbs. traded steady, steers 800 lbs. traded $6 lower and steers 900-1,000 lbs. traded $2-3 higher. Heifer offerings from 500-700 lbs. traded steady to $8 higher, and heifers 750-850 lbs. traded $5-9 lower, with the exception of 850 lb. spayed heifers trading $3 higher. Benchmark steers averaging 763 lbs. sold between $187-199, averaging $194.61.
Oklahoma: OKC West in El Reno sold 9,244 head Wednesday. Compared to the last auction, feeder steers traded $3-7 higher. Feeder heifers sold steady to $2 higher. Steer and heifer calves sold $5-10 higher. Benchmark steers averaging 740 lbs. sold between $177-180 and averaged $177.97.
South Dakota: Hub City Livestock in Aberdeen sold 2,408 head Wednesday. Compared to the previous auction two weeks ago, steers 900-950 lbs. sold $2-3 lower, while steers 951-1,000 lbs. traded $6-10 higher. Heifers were not well compared. Benchmark steers averaging 710 lbs. sold between $198-201.50, averaging $198.91. — Charles Wallace, WLJ editor
