Friday markets
The volatility in the grain sector has affected the cattle market today, with feeder cattle sharply lower. In addition, boxed beef prices declined with the resumption at JBS and a higher-than-average slaughter projected on Saturday.
Live cattle traded mixed with the June contract up 5 cents to $116.82 and the September contract lower by 45 cents, closing at $118.07 on strong opening interest.
Slaughter for today is expected to be 119,000 head, and projected to be 98,000 head on Saturday.
Cash trade was moderate today, with 6,312 head sold, trading between $120-120.50. Dressed steers sold between $190-191. On the formula side, 18,800 head averaging 860 lbs. sold for $193.29.
Boxed beef prices traded lower with the Choice cutout down $1.57 to $338.98, finishing the week $4.42 higher, and the Select cutout lower today $1.43 to $311.73 on 97 loads, higher $5.28 for the week.
Weekly Export Sales data showed 12,579 metric tons (mt) of beef was booked in the week ending May 27. This was the second-lowest weekly sale for the year, down 55 percent from the previous week and down 38 percent from the four-week average. Shipments were a calendar year low of 12,403 mt, but accumulated exports are still at a record pace of 370,897 mt.
Feeder cattle
Feeder cattle were sharply lower, with the August contract down $3.02 to $149.92 and the September contract closing down $2.75 to $152.75.
Corn contracts traded higher, with the July contract higher 20 cents to $6.82 a bushel and the September contract up 24 cents a bushel to $6.06. New crop corn was also higher, with 439,493 mt of corn bookings, closing up 25 cents to $5.91.
“On the other hand, dried distillers’ grains price tag (average of spot prices collected by DTN) dropped $7 this week to $211 per ton due to increased production at ethanol plants, according to Elaine Kub, DTN contributing analyst.
South Dakota: Mitchell Livestock in Mitchell sold 2,696 head on Thursday. Compared to the previous auction, feeder steers 850-1,100 lbs. sold steady to $1 higher. Feeder heifers 800-950 lbs. sold steady to $2 higher. An unevenly steady undertone was noted on heifers over 950 lbs. Benchmark steers averaging 816 lbs. sold between $136-140.75.
Kansas: Pratt Livestock in Pratt sold 2,380 head on Thursday. Compared to the last auction, feeder steers 675-975 lbs. sold $4-10 higher. Feeder heifers 575-900 lbs. sold $2-4 higher. Benchmark steers averaging 832 lbs. sold between $138-144.
Texas: Cattlemen’s Livestock in Dalhart sold 1,219 head on Thursday. Compared to the previous auction, there were not enough comparable sales on both steer and heifer calves and feeder steers and heifers. However, a firm undertone was noted. A small group of steers averaging 779 lbs. sold between $133-143.50.
North Dakota: Napoleon Livestock in Napoleon sold 2,471 head on Thursday. Compared to the previous auction, feeder steers 550-600 lbs. sold $4-6 higher, 950-1,000 lbs. were $1 lower. Feeder heifers 500-550 lbs. and 750-800 lbs. sold $2-4 higher. — Charles Wallace, WLJ editor
