Friday markets
“It’s hard to believe that a $6 break in cash fed cattle values this week occurred with zero fanfare,” began Livestock Market Analyst Cassie Fish in The Beef, today. “Everyone in the industry knew it was coming, as wholesale beef prices collapse by more than half in one month’s time, that the support that packers had offered to cattle prices would lessen.”
The Choice and Select cutouts for the day ended at $230.64 and $219.27 respectively on a load of 155. Average cash prices have fallen to an estimated average of $105 for the week.
“With the basis normalizing along with the relationship between boxed beef prices and cash cattle prices, the next chapter unfolding is a return to the fundamentals, which will be dominated by prices seeking a level to insure clearance of record supply and reestablishing demand,” Fish said.
Futures contracts were slightly down across the boards from yesterday. June live cattle ended at $96.08, August at $95.32, and October at $98. August feeder cattle were down to $131.10, September to $132.47, and October to $133.15.
Compared to last week, steers and heifers sold steady to $2 higher in the North Central region, whereas the South Central and Southeast sold steady to $4 lower. Demand was moderate to good. USDA reported a large load of 811-lb. thin-fleshed steers sold for $140.75 at Mitchell, SD, Livestock Auction’s Bar-B-Que Special.
The week’s receipts in the National Feeder and Stocker Cattle Summary report were nearly 50,000 less than last week, but around 25,000 more than a year ago.
Fed cattle in the Southern Plains sold $5-9 lower at mostly $104-108. Dressed sales in Nebraska sold $10-15 lower at $165-172.
For the five-area weekly accumulated slaughter, live steers (1,439 lbs.) averaged $104.84, live heifers (1,279 lbs.) averaged $105.63, and dressed steers (930 lbs.) and heifers (832 lbs.) averaged close to the same at $166.65 and $166.60, respectively.
Today’s slaughter is estimated at 115,000 head, and tomorrow’s slaughter at 76,000 head, each continuing a slight upward trend. The week’s slaughter is estimated at 658,000 head, closer to last year’s numbers of 669,000. The latest known CME Feeder Cattle Index was $129.38. — Anna Miller, WLJ editor
