Thursday markets
The cattle markets closed mixed, trading on either side of steady. The Choice/Select spread has been widening and is now $21.49.
Live cattle closed mixed, with the June contract up 22 cents to $137.05 and the August contract down 32 cents to $137.20.
Cash trade was light, with 3,746 head selling between $141-143. Dressed steers averaged $225.11.
“The cash cattle market hasn’t seen a tremendous amount of interest following Wednesday’s higher trade, but a single bid of $136 is being offered in Kansas,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments. “Texas has had a light to moderate business at mostly $136, $1 higher than last week’s weighted average. Northern dressed deals have been marked at mostly $225-226, $3 to $4 higher than last week’s weighted average basis in Nebraska. Asking prices Thursday are around $138-140 in the South and $228 in the North.”
The Fed Cattle Exchange auction held today reported a total of 1,309 head of cattle for a total of nine lots in Texas and Colorado. Two Texas lots were scratched from the auction, and none of the other lots sold, as they did not meet the asking prices of $139-141.
Slaughter for the day is projected to be 126,000 head, 1,000 above last week.
Actual slaughter for the week ending May 28 was 641,369 head. Steer weights were 882 lbs.
“The cattle feeding industry has been forced to endure years of no leverage with the packer. Finally, with front-end currentness restored, the playing field has a sense of fairness for the first time in a very long while,” Cassie Fish, market analyst for The Beef, wrote.
“Robust slaughter levels were noted in February, March and April, which is how the industry ended up current. Beef demand stumbled in May but has rebounded and even though the ‘edge is off middle meat demand’ due to nose bleed prices at retail, cutout values are still their third highest in history for June.”
Boxed beef prices closed mixed on 108 loads, with the Choice cutout down 64 cents to $271.10 and the Select cutout up 20 cents to $249.61. The Choice/Select spread has widened to $21.49.
USDA’s Weekly Export report for the May 27 to June 2 period showed net sales of 17,700 metric tons (mt), down 1 percent from the previous week and 21 percent from the prior four-week average. Exports were 17,400 mt, down 9 percent from the previous week and the prior four-week average. The destinations were primarily Japan (6,000 mt), South Korea (4,600 mt), China (2,400 mt), Mexico (900 mt) and Canada (800 mt).
USDA’s Economic Research Service reported beef imports for April totaled 293.8 million lbs., up 6.5 percent from last year but down 16.9 percent or nearly 60 million lbs. from a month ago. Shipments in April were above last year from Canada (3.7 percent), Mexico (18.9 percent) and Brazil (51.6 percent) at 79.9, 63.2 and 48.2 million lbs., respectively.
Feeder cattle
Feeder cattle closed higher on short-term contracts and lower on deferred contracts. The August contract was up 37 cents to $176.02, and the September contract was up 12 cents to $177.37. Deferred contracts were lower by 22-67 cents. The CME Feeder Cattle Index was up $1.12 to $159.80.
Old crop corn closed higher, with the July contract up 8 cents to $7.73 and the September contract up a penny to $7.29. New crop corn closed a penny lower per bushel.
Oklahoma: OKC West in El Reno sold 7,453 head Wednesday. Compared to the previous auction, feeder steers and heifers sold $5-10 higher. Steer and heifer calves traded $8-12 higher. Benchmark steers averaging 788 lbs. sold between $162-165, averaging $163.82.
South Dakota: Hub City Livestock in Aberdeen sold 1,995 head Wednesday. Compared to the last auction, the best test on steers was 900-950 lbs. and 1,000-1,050 lbs., which traded $10-15 higher. The best test on heifers was 800-850 lbs., selling $4-6 higher. Benchmark steers averaging 766 lbs. sold for $184. — Charles Wallace, WLJ editor
