Tuesday markets
“The market hasn’t seen a tremendous amount of support come its way since Tuesday’s arrival, but once the cash cattle market begins to trade, the live cattle market could see more support,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Live cattle closed mixed, with the June contract up a nickel to $136.30 and the August contract down 75 cents to $132.72. The October contract was down 72 cents to $139.40.
“Tuesday’s lower move doesn’t really push the market substantially lower, but it keeps the complex moving well within its sideways range until traders can deem higher or lower movements appropriate for the week,” Stewart wrote. “Packers haven’t shown the cash market much interest at this point, but bids could begin to develop by the afternoon.”
Cash trade was light, with 2,401 head selling for $144. According to DTN, some asking prices are starting around $140 in the South, but they are not established in the North.
On the formula side, 25,600 head averaging 851 lbs. sold for $232.60.
“There was little to no trading yesterday as box prices surprised even the expert forecasters by rising $3 in what was expected as a post-holiday lull,” wrote the Ag Center in the Cattle Report. “The rise in box prices rallied futures. Packers will be purchasing for a holiday-shortened week and inventory needs will be proportionally reduced. They will hope to use the occasion to lower prices as cattle owners hold for higher prices as show lists shorten in Kansas and Texas with small increases in Nebraska and Colorado.”
The national weekly direct beef type price distribution for the week of June 20-27 was the following on a live basis:
• Negotiated purchases: $144.15.
• Formula net purchases: $144.36.
• Forward contract net purchases: $146.97.
• Negotiated grid net purchases: $141.18.
On a dressed basis:
• Negotiated purchases: $235.53.
• Formula net purchases: $227.14.
• Forward contract net purchases: $220.
• Negotiated grid net purchases: $225.50.
Slaughter for today is projected to be 126,000 head, the same as last week.
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 81.1 percent and dressed weights higher to 854.6 lbs.
“The cattle feeding industry continues to become more current on the front end as proved by the drop in Choice+Prime grading most recently reported by the USDA,” Cassie Fish, market analyst for The Beef, wrote.
“Choice+Prime declined to the lowest level since pre-2020, nearing the 5-year average. This is a good explanation of why northern fed cattle prices are strong enough to lift last week’s 5-area average fed cattle price to a new high for the year,” Fish continued.
Last week’s five-area average price was a new high for the year, reported at $144.55, the highest since 2015.
Boxed beef closed lower on 154 loads, with the Choice cutout down $1.54 to $267.14 and the Select cutout down $1.93 to $243.31.
Feeder cattle
Feeder cattle took back most of the gains yesterday, with the August contract down $2.30 to $171.82 and the September contract down $1.85 to $174.95. The CME Feeder Cattle Index was up $1.11 to $164.20.
Corn contracts closed higher, with the July contract up 15 cents to $7.59 and the September contract up 8 cents to $6.69.
“While the board may be undergoing some pressure come Tuesday, the feeder cattle market in the countryside has seen strong demand this week as buyers know that there won’t be sales next week as auction houses take a week off for the Fourth of July holiday,” Stewart wrote.
Nebraska: Tri-State Livestock in McCook sold 975 head Monday. Since the last auction was several weeks ago, there was no market comparison. However, demand was good for a selection of green cattle. A group of steers averaging 828 lbs. sold for $175.50.
South Dakota: Sioux Falls Regional Cattle Auction in Worthing sold 3,113 head Monday. Compared to the previous auction, feeder steers 750-800 lbs. sold steady to $4 lower, 900-950 lbs. were steady to $2 higher and over 1,000 lbs. sold with significantly higher undertones. Feeder heifers 750-850 lbs. traded steady to $4 higher, 850-900 lbs. sold steady to $4 lower and 1,000 lbs. and over sold with higher undertones. Benchmark steers averaging 774 lbs. sold between $171-183, averaging $179.46. — Charles Wallace, WLJ editor
