Friday markets
Cattle futures headed into the week mixed but with live cattle contracts still discounted to cash trade by several dollars.
Live cattle futures were down, with the June contract down 2 cents to $133.60 and the August contract down 27 cents to $133.85.
There was a chunk of cash trade to close out the week, with 6,314 head sold. Live steers sold between $135-142, averaging $141.54. Dressed steers sold between $222-224, averaging $223.55.
A total of 27,500 head sold on formula, averaging 856 lbs. and $223.57.
“In the near term, it’s likely that cash prices continue to see pushback from packers as they know that record numbers of cattle sit in feedlots,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
“But from a long-term perspective, once the summer comes and goes, and the gluten of cattle is worked through, the market’s attitude is going to change, as it’s equally important to know that there are dramatically fewer cattle in the U.S. sitting outside feedlots than in years past.”
Slaughter for the week is estimated at 507,000 head so far. With an expected slaughter of 96,000 head tomorrow in an attempt to make up for limited Memorial Day numbers, the projected total for the week is 603,000 head. Last week, slaughter totaled 644,000 head.
Boxed beef prices were slightly higher on 88 loads. The Choice cutout increased 61 cents to $267.26, and the Select cutout gained 39 cents to close at $250.02.
Feeder cattle
Feeder cattle futures were modestly higher, with the August contract up 92 cents to close at $173.87 and the September contract up 82 cents to $176.30.
“As the market has successfully blown past its 40-day moving average, sellers are growing more optimistic about what the market could become as the board is starting to realize how stringent culling is going to affect feeder cattle demand this summer and well into 2023,” Stewart said.
The CME Feeder Cattle Index was unchanged at $153.48.
Corn futures were down slightly, with the July contract down 3 cents to $7.27 and the September contract also down 3 cents to $7.01.
Kansas: Winter Livestock in Pratt sold 2,932 head on Thursday. Compared to last week, feeder steers 650-950 lbs. sold $3-6 higher. Feeder heifers 650-950 lbs sold $2-5 higher. There was no recent comparison on steer and heifer calves 350-650 lbs., but a higher trend was noted. Benchmark steers averaging 770 lbs. sold between $164-164.75, averaging $164.57. — Anna Miller, WLJ managing editor
