Tuesday markets
Live cattle saw some pushback in short-term contracts, but deferred contracts were slightly higher. Feeder cattle were higher as corn was down double digits. The Crop Progress report as of Sunday showed 72 percent of the corn crop was planted nationwide.
Live cattle were down marginally, with the June contract down a nickel to $132.72 and the August contract down 22 cents. Deferred contracts were higher by 15-37 cents.
“The live cattle market is somewhat holding its breath as the market’s technicals have strengthened somewhat with boxed beef prices trending higher and traders interested in supporting the market,” ShayLe Stewart, DTN livestock analyst, wrote in the midday comments.
Cash trade was active, with 15,818 head selling between $137-144, averaging $139.31. Dressed steers sold for $227. On the formula side, 24,400 head averaging 854 lbs. sold for $227.95.
“Feedlots are current thanks to almost three months of brisk slaughter levels. With a record number of cattle on feed, it is well known a seasonal increase in market-ready fed cattle availability is on its way but cattle feeders, for now, are in good shape on front-end marketings,” Cassie Fish, market analyst for The Beef, wrote.
The national weekly direct beef type price distribution for the week of May 16-23 was the following on a live basis:
• Negotiated purchases: $140.74.
• Formula net purchases: $145.01.
• Forward contract net purchases: $150.95.
• Negotiated grid net purchases: $142.41.
On a dressed basis:
• Negotiated purchases: $225.78.
• Formula net purchases: $229.38.
• Forward contract net purchases: $224.03.
• Negotiated grid net purchases: $230.79.
Slaughter for the day is projected to be 125,000 head, the same as last week.
“Expectations for this week’s slaughter are 645K to 650K head, with many plants giving workers a three-day weekend. Next week’s slaughter will see a larger Saturday harvest,” Fish wrote. “June is typically the largest fed cattle slaughter month of any year, so look for large Saturday slaughter levels.”
USDA’s Agricultural Marketing Service released the National Weekly Fed Cattle Comprehensive report, showing quality grading at 81.6 percent and dressed weights slightly higher to 860.1 lbs.
Boxed beef closed mixed on 165 loads, with the Choice cutout down 63 cents to $263.65 and the Select cutout up $1.12 to $245.35.
USDA’s National Agricultural Statistics Service released the Cold Storage report yesterday, showing the total beef supply in cold storage was up 18.5 percent from a year ago at 531.7 million lbs. Boneless beef inventory remains heavy; the supply at the end of April was 16.7 percent higher than a year ago and 14.5 percent higher than the five-year average.
Feeder cattle
Feeder cattle closed higher, with the May contract up $1.05 to $154.50 and the August contract up $2.52 to $168.15. The CME Feeder Cattle Index was higher 45 cents to $153.17.
Corn closed sharply lower, with the July contract down 14 cents to $7.71 and the September contract down 13 cents to $7.41.
“Largely, the feeder cattle market’s strength comes from a two-sided combo as corn prices take a turn for lower prices and, given the vast downfall that feeders had last week, the market can rally its position without any nearby fears of resistance pressure,” Stewart wrote.
Nebraska: Tri-State Livestock in McCook sold 920 head Monday. Compared to the last auction, steers weighing 800-850 lbs. were $3 higher. There were not enough sales to show comparisons for any other weight classes. Benchmark steers averaging 718 lbs. sold between $160-163.50 and averaged $161.51.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 3,884 head Monday. Compared to the previous auction, feeder steers sold $3-5 higher, and heifers were steady to $1 higher. Black-hided cattle continue to be in the biggest demand, creating wide price gaps. Benchmark steers averaging 783 lbs. sold between $155-163, averaging $157.98.
Crop Progress report
“Despite two systems that brought widespread moderate to heavy precipitation to the Corn Belt last week, farmers worked through it and have nearly brought the planting pace back to average,” John Baranick, DTN meteorologist, wrote.
The Crop Progress report as of Sunday shows 72 percent of the corn was planted nationwide, a jump of 23 percentage points from the previous week. The biggest progress jumps were in Iowa, moving 29 percentage points last week to reach 86 percent, and in South Dakota, advancing 31 percentage points to reach 62 percent complete.
North Dakota and Minnesota are trailing the average planting pace by more than 10 percentage points for corn, soybeans, spring wheat and sugarbeets.
“We could see conditions allow for more advanced planting in North Dakota and the surrounding areas to possibly make up for a lot of the large gap that has occurred,” Baranick wrote. “Unfortunately, the window will be short. Another system will move into the Northern Plains on Friday night and continue to produce scattered showers across the Midwest and Central Plains over the weekend and into next week.” — Charles Wallace, WLJ editor
