Tuesday markets
Cash trade was active today as the market is keeping an eye on slaughter numbers and boxed beef prices.
“Traders and packers will be paying close attention to [boxed beef prices] as a slide had been anticipated after the Memorial Day holiday has passed,” said Robin Schmahl, DTN contributing analyst, in the DTN Early Word Livestock Comments. “There is no doubt demand remains strong, but strong demand does not mean prices will continue to increase. Demand can remain strong even at lower prices or increase as beef become less expensive.”
The June live cattle contract was up 50 cents to $116.72 and the September contract also closed higher 5 cents to $117.82.
Cash trade was active today, with 20,159 head sold between $119-121. Dressed steers sold between $189-193, averaging $190-52. On the formula side, 26,200 head averaging 854 lbs. sold for $195.85.
Slaughter for the day is projected at 120,000 head, well above last week’s sluggish number of 94,000 head due to the JBS cyberattack.
“Front-end currentness has not been restored due to uneven and generally inadequate slaughter schedules in Q2 2021,” Cassie Fish, livestock analyst at The Beef, wrote. “June will be the test. This week’s slaughter could approach 670k head, which would be positive. The question is whether the industry can kill three consecutive weeks at 670k.”
Boxed beef prices were mixed with the Choice cutout up a penny to $338.61 and the Select was down $2.99 to $306.18 on 108 loads.
Feeder cattle
Feeder cattle were trading in the red today, with the June contract closing down 95 cents to $149.25 and the September contract lower 67 cents, closing at $151.95. The CME Feeder Cattle Index was down 95 cents, closing at $140.12.
Corn traded slightly higher, with the July contract up a fraction to $6.80 a bushel and the September contract up 7 cents to $6.28. The weekly Crop Progress report showed corn emergence reached 90 percent, higher than the 5-year average of 82 percent.
New Mexico: Roswell Livestock in Roswell sold 952 head on Monday. Compared to the previous auction, steer calves and feeders sold mostly $3-6 lower. Heifer calves and feeders were $2-3 lower. The quality was not as attractive for both steers and heifers. A small group of steers averaging 526 lbs. sold between $162-172.
North Dakota: Due to exceptional drought conditions in the state, ranchers are forced to cull their herds. Rugby Livestock in Rugby—which usually holds sales every other week now has sales every week—sold 4,204 head on Monday. Benchmark steers averaging 731 lbs. sold for $162.50 and benchmark heifers averaging 774 lbs. sold for $134. —Charles Wallace, WLJ editor
