Friday markets
Negotiated cash trade hit a new high for the week, with trade reaching $150 in the North and $140 in the South. Bullish tones pushed the cattle complex higher today and for the week.
“There is little doubt that the leverage long sought by the cattle owners is now delivered to those holding cattle for sale in the north,” the Ag Center wrote in the Cattle Report. “Live prices reached $150 yesterday while dressed prices hit $235. These prices are $5-7 higher than last week. Sales in the south pushed to $140 sales in Kansas with smaller volumes in Texas at $140. Northern leverage will tend to pull up both prices in the south and live cattle futures although equity markets are pulling cattle futures in the other direction.”
Live cattle closed moderately higher, with the June contract up 27 cents to $138.02, up $4 from Monday’s sell-off, and the August contract up 27 cents to $136.57, up $2.70 for the week.
Cash trade was quiet today, with 1,478 head selling between $140-145, averaging $141.35. Dressed steers sold for $230. So far this week, southern live business has been at mostly $136-140, steady to $4 higher than last week’s weighted averages. Northern dressed deals have had a range of $223-236, but mostly $230, roughly $4 higher than last week’s weighted average.
On the formula side, 35,000 head averaging 850 lbs. sold for $222.71.
Slaughter for Friday is projected to be 124,000 head. Saturday’s slaughter is estimated at 48,000 head, bringing the weekly total to 667,000 head.
Boxed beef prices closed mixed on 106 loads, with the Choice cutout down 90 cents to $266.26 and the Select cutout up $1.15 to $246.53.
“All this points directly to the possibility that cash cattle prices continue to gain on boxed beef prices, counter seasonally,” Cassie Fish, market analyst for the Beef, wrote. “If this does occur, then a discount August live cattle futures contract will be supported by stronger-than-expected cash cattle prices if the market is able to plow through the record supplies over the summer. Packers may well be motivated to maintain slaughter as they chase volume-driven revenue.”
Feeder cattle
Feeder cattle closed triple digits higher, with the August contract up $1.65 to $172.95, up $1.63 for the week, and the September contract up $1.57 to $174.80, up $1.20 from Monday. The CME Feeder Cattle Index was up $1.61 to $162.17.
“Not only has the market seen exceptional support from the live cattle market both technically and in the cash market, but feeder cattle demand over the past two weeks has grown stronger,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “After parts of the countryside got moisture, buyers became more optimistic about buying as they can now kick their purchases straight out onto the grass and the deferred live cattle contracts are showing more promise.”
Corn closed lower, with the July contract down 3 cents to $7.84 and the September contract down 4 cents to $7.37 a bushel.
Kansas: Winter Livestock in Pratt sold 2,583 head Thursday. Compared to the last auction, feeder steers 725-900 lbs. sold $5-10 higher—an outstanding offering of fancy feeder steers. Feeder heifers 800-900 lbs. sold $3-4 higher. A group of fancy steers averaging 769 lbs. sold between $180.50-185.85, averaging $182.97.
Nebraska: Valentine Livestock in Valentine sold 2,070 head Thursday. There was no recent market test for an accurate comparison; therefore, a trend will not be given for steers or heifers. Benchmark steers averaging 739 lbs. sold between $176-190 and averaged $187.28.
Oklahoma: Apache Livestock in Apache sold 2,251 head Thursday. Compared to the last auction, feeder steers weighing 600-700 lbs. sold $3-5 lower, and over 700 lbs. were $3 higher. Feeder heifers traded $1-3 higher. Steer calves sold mostly $4-6 lower. Heifer calves traded $1-3 lower. Benchmark steers averaging 722 lbs. sold between $165-170, averaging $168.49.
South Dakota: Mitchell Livestock in Mitchell sold 3,885 head Thursday. Compared to the previous auction, feeder steers 850-1,000 lbs. sold steady to $4 higher, and steers 1,150-1,200 lbs. sold $4 higher. A steady undertone was noted on heifers up to 800 lbs. Heifers 800-1,000 lbs. sold $1-4 higher. Benchmark steers averaging 782 lbs. sold between $165.50-169.50 and averaged $167.05.
Texas: Cattlemen’s Livestock in Dalhart sold 1,459 head Thursday. Compared to the last auction, steer calves under 600 lbs. were firm to $2 higher; heifer calves under 500 lbs. sold firm compared to limited receipts last week. Benchmark steers averaging 742 lbs. sold between $162-164, averaging $162.52. — Charles Wallace, WLJ editor
