Thursday markets
Grain prices have plummeted and carried the cattle market with it.
Live cattle were sharply lower, with the June contract down $2.20, closing at $120.10 and the August contract down $3.82 to $121.10.
“With boxed beef prices lower, it came as quite the surprise to see cash cattle prices higher let alone steady, so seeing the slight weakness through Thursday’s trade isn’t baffling given that the market wasn’t even expected to perform as well as it has over the last week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was somewhat light today, with 4,033 head selling between $124-125. Dressed steers sold between $192-200, averaging $197.02. On the formula side, 29,300 head averaging 859 lbs. sold for $196.30. Thursday negotiated cash trading has been limited on light demand in Kansas, Nebraska, and the western Corn Belt.
Slaughter for the day is expected to be 120,000 head—a thousand below last week—moving this week’s slaughter to 477,000.
Boxed beef prices continued their downward trend, with the Choice cutout down $2.92 to $326.25 and the Select cutout was down $2.72 to $287.24 on 118 loads.
According to the CME Group Daily Livestock Report, beef shipments slowed down but were still quite robust at 17,821 metric tons (mt), down only about 1.6 percent from the previous four weeks’ average. Shipments to China are holding at around 3,000 mt and shipments to Japan and South Korea continued to be very strong. Total net sales for the week were 12,828 mt, 36 percent lower than the average of the last four weeks. Sales to China were strong yet again at 3,581 mt. However, net sales to South Korea slowed down significantly at 1,707 mt and were 60 percent lower than the average of the last four weeks.
Feeder cattle
Feeder cattle started the day higher but finished the day lower with the August contract down 30 cents to $157.40 and the September contract lower 70 cents, closing at $159.10. The CME Feeder Cattle Index was up $1.06 to $141.28.
“The market’s unwavering spirit couldn’t come at a better time as the industry is sitting through and/or watching Thursday’s feeder cattle sale with Superior’s Corn Belt Classic debut,” Stewart said earlier in the day. “With right at 51,000 head selling throughout the day, cattlemen will have a better sense of what the feeder cattle market could offer this fall after the sale.”
Corn contracts closed limit down 40 cents with the July contract closing at $6.33 and September closing at $5.48 a bushel. New crop corn also closed limit down 40 cents, closing at $5.32 a bushel.
New Mexico: Clovis Livestock in Clovis sold 1,700 head on Wednesday. Compared to last week, steer and heifer calves under 600 lbs. sold $6-9 higher, with instances of $13-14 higher on 300-400 lbs. and 500-600 lbs. Feeder steers and heifers sold $4 higher, with some instances of $10 higher on 700-800 lbs. Benchmark steers averaging 784 lbs. sold between $138-142.50.
Nebraska: Huss Livestock in Kearney sold 2,712 head on Wednesday. Compared to the previous auction, steers over 650 lbs. sold steady to $3 higher and heifers over 700 lbs. sold mostly steady. Benchmark steers averaging 819 lbs. sold between $147-150.
Oklahoma: OKC West Livestock in El Reno sold 9,669 head on Wednesday. Compared to last week, demand was good to very good with feeder steers trading $4-8 higher and feeder heifers sold $8-10 higher. Benchmark steers averaging 821 lbs. sold between $140-149, and averaged $146.75. — Charles Wallace, WLJ editor
