Tuesday markets
Markets have continued their current trend, and with cattle slaughter and beef production back up to more normal levels, boxed beef volumes will be able to refill the depleted supply of end users. This is shown in the dramatic decline of boxed beef prices: The Choice and Select cutouts have each continued to drop, now at $227.89 for Choice and $213.17 for Select on a load of 187.
Futures contracts were up across the boards.
“Yesterday’s pop down to a new low didn’t last, the market merely expanding the downside of the range before retreating back toward the middle,” reported Livestock Market Analyst Cassie Fish in The Beef. “At $96-97, August live cattle is in no hurry to go anywhere, seemingly content to let the bearish fundamentals of Q3 unfold. The dazzling stock market rally and buying by funds are enough to boost cattle futures intra-day, but a sustained move?”
Live cattle prices experienced a slight increase, with June’s contract at $96.33, August at $96.78, and October up $1.10 at $99.75.
“As box prices continue to decline, packers can be expected to bid lower on prices for cattle,” reported the Cattle Report. “One prediction is almost certain. Processors will not lose money while supporting the cash markets for cattle. On the demand side, lower box prices will restore lost demand from buyers who stayed out of the market while prices were high or reduced inventories to a bare minimum.”
Feeder cattle contracts were all up over a dollar-and-a-half each, with August up $1.70 to $132.88, September up $1.88 to $134.45, and October up $1.93 to $135.48. The latest known CME Feeder Cattle Index was up slightly at $128.78.
For the five-area weekly weighted cattle prices, live steers traded around $102.01, and live heifers at $101.62. Dressed steers averaged $164.48 and dressed heifers $163.31.
Compared to last week, Oklahoma National Stockyards in Oklahoma City reported feeder steers and heifers steady to $3 higher, with 600-700-lb. steers $1-3 lower. Steer calves traded $3-5 lower, but weights under 450 lbs. were not well tested. Heifer calves were steady to $4 lower.
Demand was good to very good for feeder cattle and moderate for calves. Quality was plain to average, with a few attractive.
Today’s estimated slaughter is up 2,000 head from last week at 119,000, catching up to last year’s number of 122,000 head. — Anna Miller, WLJ editor
