Monday markets
Feeders found some support today while live cattle were unable to close higher.
Live cattle futures experienced some losses today. The June contract was down 7 cents to $120.97 and the August contract was down 52 cents to $121.02.
August live cattle futures moved back below its 10-day moving average. “Some analysts believe that even as boxed beef prices fall the next four to six weeks, packers will continue to pay steady money, so perhaps the downside is limited for August LC in their view,” remarked Cassie Fish, analyst in The Beef.
“However, others are not as confident and instead expect weaker cash cattle prices developing next week and throughout July.”
A small amount of cash trade took place, with 448 head sold. Dressed steers averaged $200. On the formula side, 43,800 head averaging 854 lbs. sold for $192.88.
Last week, only a total of 79,496 head traded on the negotiated cash market. However, prices were steadily higher, with premiums of about $4 over the prior week. Live steers averaged $122.91 and dressed steers averaged $195.78.
Slaughter for the day is projected at 118,000 head, a couple thousand head higher than the same time last week. Last week’s total slaughter is expected to reach 663,000 head, close to the industry’s 670,000 head target.
Boxed beef prices continued their downward trend. The Choice cutout lost $2.08 to $321.20 and the Select cutout lost $2.15 to $281.46 on 90 loads. The Choice-Select spread is still high at $39.74.
Feeder cattle
Feeders made some small gains today. The August contract was up 7 cents to $155.10 and the September contract was up 15 cents to $157.37. The CME Feeder Cattle Index gained $3.30 to $144.58.
Corn prices were mixed. The July contract was up 4 cents to $6.59 and the September contract was up 6 cents to $5.71. The December new crop contract lost 9 cents to $5.57.
“We are entering a period when summer placements decline and most of the offerings are forward sales of cattle for next fall after the grazing season,” said the Cattle Report. “This year buyers of fall deliveries of cattle will be cautious of prices with uncertain grain prices.”
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,750 head Monday. Feeder steers and heifers sold $1-3 lower. Benchmark steers averaging 778 lbs. sold between $139-150.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head Monday. At mid-session, feeder steers traded $3-5 higher, and feeder heifers traded $3-6 higher with the most advance on heavier weights. Benchmark steers averaging 768 lbs. sold between $141-148. — Anna Miller, WLJ managing editor
