Thursday markets
Despite a disappointing corn export report and lower corn futures, feeder cattle did not get any technical support, closing lower. Live cattle are still trading sideways, closing a dab higher.
Live cattle closed higher, with the June contract up 10 cents to $132.40 and the August contract up 7 cents to $132.60. Deferred contracts closed 2-52 cents lower.
Cash trade was moderate, with 8,833 head selling between $136-144, averaging $140.44. Dressed steers sold between $222-227 and averaged $224.31. Negotiated cash trading in Kansas, Nebraska and the western Corn Belt has been slow on light demand. In Kansas, a few live purchases traded at $136. In Nebraska, a few dressed purchases traded at $224.
On the formula side, 28,200 head averaging 861 lbs. sold for $224.95.
“Fundamentals are just not strong enough to trigger any widespread buying interest in traders. Weaker cash this week continues to leave June at a discount to cash with one month remaining for the contract,” Robin Schmahl, DTN contributing analyst, wrote in the Early Word Livestock Comments. “A lot can happen over the next month with the trade holding a discount, believing further weakness may develop.”
Slaughter for the day is projected to be 124,000 head, a thousand below last week.
Actual slaughter for the week ending May 14 was 651,294 head. Steer carcass weights were 891 lbs.
Boxed beef prices were higher on 134 loads, with the Choice cutout up $1.04 to $263.97 and the Select cutout up 37 cents to $244.43.
USDA’s Weekly Export report for the May 13-19 period showed net sales of 20,000 metric tons (mt), down 14 percent from the previous week but up 3 percent from the prior four-week average. Exports were 17,500 mt, down 12 percent from the previous week and 10 percent from the prior four-week average. The destinations were primarily Japan (5,200 mt), South Korea (4,500 mt), China (2,500 mt), Taiwan (1,500 mt) and Mexico (1,100 mt).
Feeder cattle
Feeder cattle closed lower, with the May contract down 2 cents to $154.57 and the August contract down $1.27 to $166.67. The CME Feeder Cattle Index was up 45 cents to $153.80.
New crop corn bookings were well below analysts’ expectations, leading to lower corn futures. The July contract was down 7 cents to $7.65, and the September contract was down 5 cents to $7.34.
Oklahoma: OKC West in El Reno sold 6,264 head Wednesday. Compared to the last auction, feeder steers sold mostly steady, with a few trades of $2 higher. Feeder heifers traded $2-5 higher. Steers and heifer calves sold $3-6 lower on limited comparable offerings. Benchmark steers averaging 789 lbs. sold between $149-157 and averaged $151.48.
South Dakota: Hub City Livestock in Aberdeen sold 4,745 head Wednesday. Compared to the previous auction, steers 800-850 lbs. sold $4-8 higher, and 851-950 lbs. were steady to $1 lower. Heifers 800-850 lbs. were mostly steady. Benchmark steers averaging 713 lbs. sold between $163-179.50, averaging $171.35. — Charles Wallace, WLJ editor
