Tuesday markets
It was a tough start for commodity markets to begin the holiday shortened week, as traders were reluctant to jump into the market.
Live cattle closed lower, with the August contract down $1.67 to $132.92 and the October contract down $1.50 to $138.47.
“The live cattle contracts aren’t seeing any support in their marketplace heading into Tuesday’s afternoon,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Yes, Friday’s market was able to close higher, but largely last week’s lower tone unraveled some of the market’s confidence.
“Having the Fourth of July weekend behind us now, everyone wants to know what July’s market is going to bring? How will beef demand fare? Will processing speeds continue to run 660,000 head per week, or will speeds regress and showlists grow? The biggest theme in Tuesday’s market is that it seems like there are more unanswered questions at this point than answered questions,” Stewart continued.
Cash trade was at a standstill, with only 150 head sold—not enough for a market trend. On the formula side, 34,600 head averaging 873 lbs. sold for $226.98.
Cash trade through last week totaled 73,137 head. Of that, 63 percent (46,299 head) were committed to nearby delivery, while the remaining 37 percent (24,838 head) were committed to deferred delivery. Live steers averaged $146.43, and dressed steers averaged $234.06.
Slaughter for today is projected to be 126,000 head. Slaughter did occur on the Fourth of July, at 2,000 head. This week’s estimated slaughter is 636,000 head.
Boxed beef closed mixed on 109 loads, with the Choice cutout up 84 cents to $264.66 and the Select cutout down 60 cents to $239.87.
Feeder cattle
Feeder cattle were lower despite corn’s demise, with the August contract down $1.80 to $172.70 and the September contract down $1.55 to $176.10. The CME Feeder Cattle Index was down 33 cents to $165.34.
Corn futures regained some ground from the opening but still closed down double digits. The July contract was down 18 cents to $7.36, and the September contract was down 27 cents to $5.92 a bushel.
The Cattle Range reported in their Weekly Market Summary that regionwide averages for feeder cattle averaging 750 lbs. were as follows:
• North Central region (North and South Dakota, Iowa, Missouri, Montana, Nebraska and Wyoming): $181.84, up from $177.09 last week.
• South Central region (Arkansas, Colorado, Kansas, New Mexico, Oklahoma and Texas): $169.04, up from $167.48 last week.
• Western region (Arizona, California, Idaho, Nevada, Oregon, Utah and Washington): $169.62, up from $166.17 last week. — Charles Wallace, WLJ editor
