Wednesday markets
Cattle markets have been steady to slightly higher. Cash live cattle markets have been slow but sure, with 5,000-7,000 head selling Monday and Tuesday. Today 26,000 head traded in the cash market in a wide range; live cattle sold between $90-100 and dressed steers sold between
$155-160 so far this week.
Futures markets have rolled back their early week gains today and yesterday. August live cattle lost 85 cents to $99.15 and October lost 67 cents to $103.50. It seems traders think we’ll be through the backlog in October.
Feeder cattle have been soft all week, with the August contract losing 87 cents to $134.50 and September losing 67 cents to $135.67. Cash markets around the country have been much better, with many benchmark yearling steers on Superior Livestock Auction’s Rocky Mountain Sale trading between $132 for regular cattle weighing 975 lbs. Program cattle are selling in the $145 range for the same weight cattle.
Calves were a full $20 lower than last year. Today, one consignor’s cattle brought $148 on 620 lb- steers and $146.75 on their heifer mates weighing 570 lbs. One group of steers weighing 510 lbs. with NHTC and other attributes brought $164.
Some ultra-lights were getting close to the $200 mark, but 500-600-lb. calves for fall delivery were selling between $140-145 consistently.
The negotiated cash trade today saw 26,310 head sell. Trade throughout the feeding regions was moderate. In the Texas Panhandle, live purchases traded steady at $95.00. Compared to Tuesday in Kansas, live purchases traded steady to $10 lower from $94-95. Trade was slow on moderate demand in the Northern Plains.
In Nebraska a few early live purchases traded from $95-96, however there were not enough trades for an adequate market test. Last week in Nebraska, live purchases traded from $95-96 with dressed purchases from $157-160 on Tuesday. Last week in Colorado, live purchases traded mostly at $96.
Trade was slow to moderate on moderate demand in the western Corn Belt. Compared to Tuesday, live purchases traded steady to $20 higher from $99-100. A few dressed purchases traded from $157-158. The weighted average for live steers was $96.59 and dressed cattle was $157.83. There were 23,700 head priced on the formula grid basis and averaged $154.59 at 884 lbs.
The beef market moved a tad lower but has stabilized. The Choice boxed beef index was down
$1.47 to $203.43 and Select was down $1.32 to $195.52. The ground beef markets are very stable with the 90 percent lean trading at $247.43 and the fifty-fifty trim at $49.51. Both products have been trading in that range for several weeks. The cow beef cutout was at $196.15 on July 3.
Thoughts of the day from the Cattle Report at Ag Center were, “Cattle owners are encouraged to hold cattle asking prices near the spot market futures contract. Managed funds are buying the futures of many commodities betting on rising prices as the economy recovers. This builds premium prices into the futures that in turn encourages higher asking prices for cattle. But holding for higher prices bears a risk the cattle reach a heavy weight and packers back away from purchase or demand large guarantees on discounts.
“The hope of some cattle owners is to soon reach the point when smaller placements of the first four months of the year will catch up with the backlog of fed cattle from the plant slowdown and shutdowns. The problem is while waiting and hoping, cattle are gaining weight every day. This adds tonnage to an already burdened spot market for beef. The extra weight per carcass is currently around 40 lbs. for each animal sold. This is reflected in the weekly comprehensive weekly cattle summary report.
“The loop comes full circle when traders are able to see the weekly change in carcass weights and measure the influence of weight on price. Betting when and if the industry is able to gain current status remains an open question.
“Progress, or the lack of, will be revealed each week. Reopening the economy is demonstrating for many the desire to accept the risk of infection as a price to pay to allowing the business of life to proceed. Hopefully, moving forward with caution for health concerns.” — Pete Crow, WLJ publisher
