Friday markets
The market traded into the weekend mostly higher. Futures found some gains, and slaughter for the week will be a few thousand head more than last week.
Live cattle futures closed modestly higher, with the August contract up 27 cents to $136.45 and the October contract up 40 cents to $142.22.
“The market’s higher tone comes as boxed beef prices are showing support in the day’s midday report and as the market finds technical support at the 100-day moving average,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments. “Still, the market’s slight attempt at a rally seems to come too late and be too little as the market regressed throughout most of the week and again cash cattle traded lower.”
There was some cash trade to close out the week, with 4,525 head sold. Live steers sold between $134-145, and dressed steers sold from $224-225. Cash trade volume for the week is estimated at about 72,000 head.
Slaughter for the day is estimated at 124,000 head, bringing the week’s total to 619,000 head. With tomorrow’s slaughter expected at 50,000 head, slaughter for the week will total around 669,000 head, a few thousand head more than a week earlier.
Boxed beef prices were higher on 74 loads. The Choice cutout gained $1.47 to close at $269.24, and the Select cutout gained $1.44 to close at $242.25.
Feeder cattle
Feeder futures closed out the week on a higher note. The August contract gained $1.15 to close at $178.57, and the September contract gained $1.35 to close at $181.55.
The CME Feeder Cattle Index lost 24 cents to close at $172.31.
Corn futures traded mostly sideways, with the September contract up a penny to $6.16 and the December contract also up a penny to $6.20.
“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 are realized,” the Ag Center wrote in the Cattle Report. “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.”
South Dakota: Mitchell Livestock Auction in Mitchell sold 6,039 head on Thursday. Compared to last week, there were a small number of lighter-weight steers, so a trend was not applicable. There were many large load lots of steers over 1,000 lbs., making for much higher prices for larger steers. Heifers 850-950 lbs. were $2-4 higher. Benchmark steers averaging 760 lbs. sold for $185.75. — Anna Miller, WLJ managing editor
